Crypto speculation dominates $600B cross-border payments: BIS report
Cross-border cryptocurrency payments reached approximately $600 billion in Q2 2024, primarily driven by speculative investment, according to the Bank for International Settlements (BIS). The report highlights Bitcoin (BTC), Ether (ETH), and stablecoins USDT and USDC as key players in this market. Speculative motives and global funding conditions significantly influence crypto asset flows, with tighter funding conditions leading to reduced transaction volumes. Stablecoins and low-value Bitcoin transactions are increasingly used for practical purposes, such as alternatives to traditional remittances, with geographical barriers less impactful than in conventional finance. High remittance fees and fiat inflation encourage the use of cryptocurrencies for international transfers, particularly from developed to emerging markets. The US and UK represent 20% of cross-border payments using Bitcoin and USDC, while Russia and Turkey account for over 12% of USDT transactions.
