Businesses and consumers across 17 emerging markets are paying an average premium of 4.7% over the standard dollar price to access stablecoins, with that figure rising to 30% in countries such as Argentina.
The data was collected in a recent analysis by the Center for Economics and Business Research (CEBR) and BVNK, and the resulting report predicts that these premiums will total $25.4 billion by 2027.
According to the report, stablecoins have played a key role in global finance over the past decade, creating their own niche market 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 each year and offer 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 caps of approximately $83 billion and $28 billion, respectively, according to data from CryptoSlate.
Stablecoins free up capital
According to the report, stablecoins have become essential for financial transactions, especially in regions where local currencies are unstable or where access to the traditional U.S. dollar is limited.
The report estimates that currency fluctuations will cause an average 9.4% GDP loss across the 17 countries studied, totalling $1.2 trillion, from 1992 to 2022. However, since their introduction, stablecoins have helped mitigate some of the negative effects of currency fluctuations in emerging markets.
In countries like Brazil and Indonesia, where exchange rate fluctuations threaten economic stability, stablecoins have become a reliable store of value, protecting businesses and consumers from financial loss.
The report adds that traditional cross-border payment systems are often slow and inefficient, with large amounts of working capital stuck in transit. The report found that across the four major B2B payment corridors, approximately $11.6 billion is stuck in these systems at any one time.
Stablecoins have freed up much of this capital by enabling faster and more efficient payments, and the report predicts that by 2027, these efficiency gains will generate an additional $2.9 billion in economic benefits through increased liquidity, reduced borrowing costs and reduced operational delays.
Increasing adoption of stablecoins
Emerging markets such as Turkey, Thailand and Brazil are seeing increased adoption of stablecoins, which play a key role in preserving savings and conducting international trade in these regions where currency devaluations continue.
The report also noted that companies in these countries are increasingly turning to stablecoins to protect their balance sheets and ensure price stability in long-term contracts.
Looking ahead, the report predicts that stablecoin payment volume could reach $15 trillion by 2030, with the total market capitalization exceeding $1 trillion.
This growth will be driven by the continued adoption of stablecoins in both emerging and developed markets, as well as the introduction of new interest-bearing stablecoins, further increasing their economic impact.
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