Will regional banks stop relying on central banks for cross-border transfers and use stablecoins? Is there infrastructure for transactions with stablecoins?
short answer:
Yes, it is possible that regional banks will reduce their dependence on traditional central bank systems for cross-border payments and use stablecoins,
and yes, much of the infrastructure already exists, although it is not yet fully deployed at a systemic scale.
Now let’s go step by step, with important nuances 👇
1️⃣ Why would regional banks want to use stablecoins?
Current problem (traditional systems)
Today, cross-border transfers depend on:
SWIFT
Correspondent banks
Pre-funded liquidity (nostro/vostro)
Banking hours
High costs and slowness (1–5 days)
For regional banks, this is especially inefficient because:
They don’t always have direct access to large networks
Pay higher taxes/fees
Depend on large intermediaries
What stablecoins offer
Well-regulated stablecoins (USDC, EURC, etc.) offer:
Near-instant settlement
24/7
Low costs
Fewer intermediaries
Programmability (automated compliance)
👉 For small and medium cross-border payments, they are objectively better in many cases.
2️⃣ Does this mean 'no longer depending on central banks'?
Here it’s important to be precise:
🔹 The central bank is not eliminated, but:
Theyreduce direct operational dependence on their payment systems
Money remains backed by bank deposits and regulation
In practice:
The central bank remains the guarantor of the system
But the 'movement layer' of money is changing
This is similar to:
Moving from sending physical letters (SWIFT) to using the internet (blockchains)
3️⃣ Are there real cases already? → Yes
Clear examples:
Regional banks in the U.S. and LATAMtesting USDC for remittances
UAE, Singapore, and Europewith banking pilots
Visa and Mastercardsettlement in stablecoins
PayPal, Stripe, Circle working with banks
This is not theory—it’s pilot phase / early adoption.
4️⃣ Is the infrastructure in place for this?
🔧 Technical infrastructure → Yes, largely in place
Today, we already have:
Fast and low-cost blockchains (Ethereum L2, Solana, etc.)
Audited stablecoins
Institutional custody
Banking APIs
Regulated on-ramps / off-ramps
From a technological standpoint:
The system works today.
🏛️ Regulatory infrastructure → Partial, but progressing
Here lies the real bottleneck.
What is needed:
Legal clarity (e.g. CLARITY Act, GENIUS Act)
Clear KYC/AML rules
Accounting treatment
Regulated custody
The good news:
👉 This is already being built, not starting from scratch.
5️⃣ What is most likely to happen?
It won’t be an 'all or nothing' scenario.
Most realistic scenario (next 1–3 years):
Regional banks use stablecoins for:
Remittances
B2B payments
Intraday liquidity
They continue using traditional systems for:
Large settlements
Systemic interbank operations
➡️ Hybrid model, not total replacement.
6️⃣ What role will stablecoins play?
Probably:
Stablecoins = settlement layer
Banks = customer management, compliance, and credit
Central banks = backing and monetary stability
This explains why:
Governmentsare not banning stablecoins
They are trying to regulate them
7️⃣ Risks and limitations (important)
It’s not perfect:
⚠️ Regulatory risk (still uneven across countries)
⚠️ Risk of concentration among large issuers
⚠️ Operational / cybersecurity risk
⚠️ Need for global standards
But none of these are 'deal breakers'.
🧠 Conclusion
✔️ Yes, it’s very likely that regional banks will reduce their operational dependence on traditional systems and use stablecoins
✔️ The technical infrastructure already exists
✔️ Regulation is catching up to technology, not the other way around
✔️ The change will be gradual, hybrid, and quiet—not disruptive overnight
We are not seeing the end of the traditional financial system,
we are seeing itsmodernization of the payments layer.
This is general information only and not financial advice. For personal guidance, please talk to a licensed professional.