In “How Will Stablecoins Impact Cross-Border Payments?” (Techopedia, 21 August 2024), Elizabeth Severinovskaya discusses stablecoin—digital currencies tied to relatively stable assets—and the benefits and challenges of using it for cross-border payments. On the plus side, Elizabeth notes, “Stablecoin transactions let users send money at the speed of the Internet, 24/7/365, rather than at the speed of banking which involves a complicated series of intermediaries.” She adds: “You can send any amount, to any recipient in the world, in a USD equivalent, where the average transaction speed will be seconds, not minutes, not days, and the average transaction fee will be in cents, not dollars.”
However, there are challenges, including a lack of familiarity with the technology. According to Elizabeth, one thing blocking adoption is the need to make payments simpler. She comments: “People are used to traditional cross-border payments, even though they are expensive and slow, as they know their banks or money transfer services will help them.”
Read the Techopedia article.
