Article – The world of money is changing fast. People are now sending digital coins called stablecoins across countries. These coins work differently from regular money like dollars or euros.
A new study by the Bank for International Settlements (BIS) looks at how these digital coins move around the world. The BIS is like a bank for all the world’s central banks. They wanted to see if stablecoins are changing how money flows between countries.
Stablecoins are special cryptocurrencies designed to keep steady value. Unlike Bitcoin, which goes up and down in price, stablecoins try to stay equal to one dollar or one euro. This makes them more useful for everyday payments.
The BIS researchers tracked millions of transactions using these digital coins. They found some interesting patterns in how people use them. For instance, many people use stablecoins to move money to places where traditional banking is harder to access.
“Stablecoins are creating new pathways for money to flow across borders,” explains the report. “These pathways sometimes work differently than traditional banking systems.”
One big finding was that stablecoins move more at night and on weekends. This is when regular banks are closed. People don’t have to wait for banks to open to send money overseas anymore.
The study also found that some countries see more stablecoin activity than others. Places with strict money rules or weak banking systems often have more people using these digital coins.
Tether (USDT) is the most popular stablecoin for sending money across borders. It works on many different blockchain networks, making it flexible for users worldwide.
But there are worries too. Without proper checks, bad actors might use stablecoins to hide money or avoid taxes. The BIS says governments need to work together on rules for these digital coins.
The report suggests that central banks should pay attention to stablecoins. They might affect how traditional money systems work and how central banks control their countries’ money.
Some countries are already working on their own digital currencies called CBDCs. These would be official digital versions of their national money. The BIS thinks these might work alongside stablecoins in the future.
For ordinary people, this means more choices in how to send money to family or friends in other countries. Stablecoins can be cheaper and faster than old-fashioned money transfers.
Financial experts are watching these trends closely. “We’re seeing the early stages of a big change in how money moves around the world,” says one analyst quoted in the report.
The BIS plans to keep studying stablecoins as they grow more popular. They want to understand how these digital coins might change our money system in the years ahead.
For now, stablecoins remain a small part of global money flows. But they’re growing fast and showing us a glimpse of what the future of money might look like.
