The global stablecoin volume in 2024 set a new record, reaching nearly $14 trillion, surpassing Visa’s annual transaction volume of $13 trillion. This finding comes from Bitwise’s latest report, which highlights the rapid adoption of stablecoins as a primary payment tool in the digital economy.
What Drives the Growth of Stablecoin Transaction Volume?
The sharp increase in stablecoin transaction volume didn’t happen overnight. Several key factors are driving this trend:
1. Price Stability
Stablecoins such as USDT (Tether) and USDC (Circle) are designed to maintain a stable value against the US dollar. Unlike volatile cryptocurrencies like Bitcoin or Ethereum, stablecoins offer users more confidence for daily transactions.
2. Low Cost and High Speed
Stablecoin transactions are typically faster and cheaper, especially for cross-border payments. This efficiency has made stablecoin transactions increasingly popular for remittances and international trade.
3. Adoption by Major Institutions
Giant companies like PayPal, Bank of America, and Fidelity have started adopting stablecoins in various financial services. The involvement of major institutions brings legitimacy and boosts public trust in stablecoins.
4. Regulatory Support
Pro-crypto policies from the US government, such as the GENIUS Act and the STABLE Act, provide a clear legal framework for stablecoin development. This regulatory support has accelerated global adoption and significantly increased stablecoin volume.
Stablecoins: The Future of Digital Payment Systems
With the rapid growth in stablecoin transaction volume, it’s clear that stablecoins are no longer just a complementary part of the crypto world—they have become a vital pillar of the global digital financial system. Their advantages in terms of stability, efficiency, and regulatory support are making them an increasingly attractive alternative to traditional payment systems.
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