Businesses and consumers in 17 emerging markets pay an average premium of 4.7% over the standard dollar price to access stablecoins, while in countries like Argentina this figure rises to 30%.
The data was collected in a recent analysis conducted by the Center for Economics and Business Research (CEBR) and BVNK. The resulting report projected that these premiums will total $25.4 billion by 2027.
According to the report, stablecoins have played a major role in global finance over the past decade, creating a niche for themselves due to their ability to “unlock capital.”
With a cumulative market capitalization of $165 billion as of mid-2024, stablecoins facilitate trillions of dollars in transactions annually, providing a stable alternative to volatile cryptocurrencies like Bitcoin.
As of June 30, the two largest stablecoins are Tether (USDT) and USD Coin (USDC), with market capitalizations of approximately $83 billion and $28 billion respectively, based on CryptoSlate facts.
Stablecoins unlock capital
According to the report, stablecoins have become essential for financial transactions, especially in regions where local currencies remain unstable or where access to traditional US dollars remains limited.
The report estimates that currency volatility has led to an average GDP loss of 9.4% across the seventeen countries surveyed between 1992 and 2022, for a total loss of $1.2 trillion. However, since their inception, stablecoins have helped mitigate some of the adverse effects of currency volatility in emerging markets.
In Brazil and Indonesia, where fluctuating exchange rates threaten economic stability, stablecoins have become a reliable store of value, protecting businesses and consumers from financial losses.
The report added that traditional cross-border payment systems, which are often slow and inefficient, tie up significant amounts of working capital in transit. It found that there is approximately $11.6 billion tied up in these systems at any given time across four major B2B payment routes.
Stablecoins have unlocked much of this capital by enabling faster and more efficient settlements. The report predicts that these efficiency gains will generate an additional $2.9 billion in economic returns by 2027, increasing liquidity and reducing financing costs and operational delays.
Growth in adoption of stablecoins
Emerging markets such as Turkey, Thailand and Brazil are leading the adoption of stablecoins. In these regions, where currency devaluation continues, stablecoins play a crucial role in preserving savings and conducting international trade.
The report also noted that companies in these countries are increasingly relying on stablecoins to protect their balance sheets and ensure stable prices in long-term contracts.
Looking ahead, the report predicted that stablecoin payment volumes will reach $15 trillion by 2030, with market capitalization potentially exceeding $1 trillion.
This growth will come from the continued adoption of stablecoins in both emerging and developed markets, as well as the introduction of new interest-bearing stablecoins that will further increase their economic impact.