PANews October 20 news: The Bank for International Settlements (BIS) has released Working Paper No. 1385, comparing the cross-border payment costs of traditional banks, fintech remittance providers, and stablecoins. The paper notes that stablecoins can complete cross-border transfers through networks such as Ethereum, Solana, and Tron, reducing reliance on correspondent banks and SWIFT; stablecoin exchange prices for major currencies can approach wholesale foreign exchange rates, and on-chain transfer fees are relatively low. However, the complete "fiat—stablecoin—fiat" process still involves trading, withdrawal, and on/off-ramp fees, and stablecoins restructure intermediation rather than eliminate it. Insufficient market depth also limits the cost advantage for large-value payments, while the advantage in some emerging markets is related to capital controls and demand for the U.S. dollar.
BIS paper: Stablecoins can reduce cross-border settlement frictions, but remain constrained by on/off-ramp costs and liquidity limitations.
Related news
Circle Shareholder Sues Trump, Alleging Unconstitutional Profits From $2B UAE Crypto Deals
Bitcoin Magazine Circle Shareholder Sues Trump, Alleging Unconstitutional Profits From $2B UAE Crypto Deals A shareholder of stablecoin giant Circle has alleged the president corru...
Michael Howell: Bitcoin as the Apex Liquidity Asset
📺 Watch VideoBitcoin Magazine Michael Howell: Bitcoin as the Apex Liquidity Asset CrossBorder Capital's Michael Howell explains why global liquidity drives markets and why Bitcoin...
Richard Byworth: Bitcoin’s Next Run “Just a Mater of Time” thanks to Seller Exhaustion
Bitcoin Magazine Richard Byworth: Bitcoin’s Next Run “Just a Mater of Time” thanks to Seller Exhaustion Can you earn yield on Bitcoin safely? Richard Byworth warns against covered...
Ark Invest’s Lorenzo Valente: Bitcoin’s 5-Year Forecast – Stablecoin & Gold Impacts
Bitcoin Magazine Ark Invest’s Lorenzo Valente: Bitcoin’s 5-Year Forecast – Stablecoin & Gold Impacts ARK Invest holds its 5-year Bitcoin thesis despite a flat year. Lorenzo Valente...
Understanding Digital Money and Digital Yield
Bitcoin Magazine Understanding Digital Money and Digital Yield This is an in-depth overview of the nascent business models built on top of the preferred securities of Bitcoin balan...