Stablecoins and Cross-Border Payments: How Digital Dollars Move Across Borders
The Block·
60-second summary
Stablecoins are being used for cross-border payments, with a sender converting their local currency into a stablecoin, sending it to the recipient's blockchain address via a blockchain network, and the recipient converting it back into their local currency. This process is faster and cheaper than traditional bank transfers, reducing the need for intermediaries and increasing financial inclusion globally.
Stablecoins are a type of cryptocurrency designed to hold a fixed value against a reference currency, most commonly one U.S. dollar. Transferring stablecoins across countries is unlike transferring money through a bank: A sender converts their local currency into a stablecoin, sends it to the recipient’s blockchain address via a blockchain network, and the recipient […]