Global Stability or Rift: The Diverse Landscape of Stablecoin Adoption Worldwide

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September 7,2025

The world of stablecoins, digital currencies designed to maintain a stable value, is undergoing a notable transformation. Recent developments indicate a growing divergence in how these assets are used-and regulated-across the globe. While the United States focuses on integrating stablecoins into conventional finance, emerging markets are increasingly reliant on them as a lifeline against economic instability.

The U.S. Approach: Regulation and Institutional Adoption

In July 2025, the passage of the GENIUS Act marked a pivotal moment for stablecoins in the United States. This legislation establishes a federal framework for payment stablecoins, mandating full backing with short-term assets like Treasury bills and deposits. BitPay, a global crypto payment processor, anticipates the new regulations will accelerate adoption. The company noted thay are expanding support for networks and use cases with real-world traction.

According to Gillian Darko, Director of strategy at Yellow Card, the Act enhances trust in USD-backed stablecoins, clarifying expectations for reserve assets and redemption procedures. However, the GENIUS Act also restricts innovation by prohibiting issuers from sharing interest earned on reserves with holders. This benefits banks and institutions, allowing them to retain the yield while offering faster payments to retail users. A key concern for traditional financial institutions was preventing capital flight from their existing deposit bases.

Emerging Markets: A Lifeline in Times of Economic strain

The story is markedly different in the Global South. Across Africa, South America, and Southeast Asia, stablecoins are not merely upgrades to payment systems; they are essential tools for individuals and businesses navigating economic challenges. Ben el-baz, Head of Global Expansion at HashKey Group, emphasizes that in volatile economies, users prioritize dollar stability and affordable transactions over yield opportunities.

Yellow Card highlights three key drivers of stablecoin adoption in Africa: remittances, corporate treasury management, and savings. The high cost of traditional remittances-often exceeding 12% per transaction-makes stablecoins a compelling alternative, offering instant and cost-effective transfers. Businesses are also utilizing stablecoins to manage liquidity, hedge against currency fluctuations, and facilitate cross-border payments.

A Tale of Two Volumes: Global Stablecoin Distribution

Data from Fundstrat Capital reveal a stark contrast in stablecoin volume. Approximately 80% of all stablecoin transactions occur outside the United States, with the Asian corridor representing a significant portion. According to BitPay, stablecoins now account for 40% of overall payment volume in 2025, up from 30% in the previous year. USDT currently leads as the preferred stablecoin for payments, surpassing USDC.

Metric	2024	2025
stablecoin Payment Volume (total)	30%	40%
USDT Payment Share	Less than USDC	61%
USDC Payment Share	Greater than USDT	38%

The Future of Stablecoins: Convergence or Divergence?

Despite these divergent paths, there are signs of potential convergence. While emerging markets currently prioritize stability and affordability, there is growing interest in yield-bearing stablecoin products among corporations. This suggests a shift towards a more complex financial landscape in these regions, mirroring the developments in the U.S.

Tether CEO Paolo Ardoino recently stated that the U.S. stablecoin model is “broken” and unsustainable, highlighting the challenges of navigating complex regulations and limited yield opportunities.Though, experts believe that the fundamental benefits of stablecoins-speed, efficiency, and accessibility-will continue to drive adoption globally.

Did You Know? Stablecoins offer a potential solution to financial inclusion, providing access to digital payments for the unbanked and underbanked populations worldwide.

Pro Tip: When considering stablecoins, always research the issuer, understand the underlying collateral, and be aware of the regulatory landscape in your region.

Understanding Stablecoin Risks

While stablecoins offer numerous benefits, it’s crucial to recognize the associated risks. These include counterparty risk from unregulated issuers, lack of transparency regarding reserves, potential for platform hacks, and regulatory uncertainty. Investors and users should exercise caution and conduct thorough due diligence before engaging with any stablecoin.

Frequently Asked Questions about Stablecoins

• What is a stablecoin? A stablecoin is a type of cryptocurrency designed to maintain a stable value, typically pegged to a fiat currency like the U.S. dollar.
• How does the GENIUS Act impact stablecoins? The GENIUS Act establishes a federal regulatory framework for U.S. payment stablecoins, requiring full reserve backing and promoting transparency.
• Why are stablecoins popular in emerging markets? Stablecoins provide a stable store of value and a low-cost alternative to traditional remittances in countries facing economic volatility.
• What are the risks associated with stablecoins?
  
  

  How do differing regulatory approaches to stablecoins across North America, Latin America, and Asia-Pacific impact their adoption rates and use cases in each region?

  What are Stablecoins and Why the Global Interest?

  Stablecoins, a relatively new class of cryptocurrencies, have rapidly gained traction globally. Unlike Bitcoin or Ethereum, known for their price volatility, stablecoins aim to maintain a stable value, typically pegged to a fiat currency like the US dollar. This stability is achieved through various mechanisms, including backing with reserves, algorithmic adjustments, or a combination of both. As highlighted in recent analyses (krypto-wissen.de), some stablecoins dynamically adjust their supply based on demand – increasing issuance when the price rises and decreasing it when the price falls – to maintain the peg. This makes them attractive for everyday transactions, remittances, and as a bridge between the customary financial system and the world of decentralized finance (DeFi).

  Regional Adoption Patterns: A World Map of Stablecoin use

  The adoption of stablecoins isn’t uniform. It varies considerably based on economic conditions,regulatory frameworks,and technological infrastructure. Here’s a breakdown of key regions:

  North America (USA & canada): Primarily driven by DeFi activity and institutional investment. Tether (USDT) and USD Coin (USDC) dominate the market. Regulatory scrutiny is increasing, focusing on reserve transparency and potential systemic risks.

  Latin America (Brazil, Argentina, Venezuela): High inflation and economic instability are major drivers. Stablecoins offer a hedge against currency devaluation and facilitate cross-border payments. P2P trading platforms utilizing stablecoins are flourishing.

  Asia-Pacific (China, Vietnam, Philippines): varying levels of adoption. China,despite a ban on cryptocurrency trading,sees meaningful over-the-counter (OTC) stablecoin trading. Vietnam and the Philippines utilize stablecoins for remittances and access to financial services.

  Europe (UK, Germany, France): Growing interest, particularly in DeFi and cross-border payments. MiCA (Markets in Crypto-Assets) regulation is shaping the landscape, aiming to provide a clear legal framework for crypto assets, including stablecoins.

  Africa (Nigeria, Ghana, Kenya): Limited banking access and high remittance costs drive stablecoin adoption. Peer-to-peer platforms are popular, offering a more efficient and affordable way to send and recieve money.

  Types of Stablecoins: A Comparative Analysis

  Understanding the different types of stablecoins is crucial for assessing their risks and potential.

  1. Fiat-Collateralized Stablecoins: (e.g., USDT, USDC) Backed by reserves of fiat currency held in custody.Transparency of these reserves is a key concern.
  2. Crypto-Collateralized Stablecoins: (e.g., DAI) Backed by other cryptocurrencies, often over-collateralized to mitigate volatility. Reliance on complex smart contracts introduces technical risks.
  3. Algorithmic Stablecoins: (e.g., formerly TerraUSD) Rely on algorithms and smart contracts to adjust supply and maintain the peg. Historically, these have proven to be the most vulnerable to collapse.
  4. Commodity-Collateralized Stablecoins: Backed by physical commodities like gold or silver. Offer a different form of stability but face challenges related to storage and auditing.

  Regulatory Hurdles and the Future of Stablecoin Governance

  Regulation is arguably the biggest challenge facing widespread stablecoin adoption. Governments worldwide are grappling with how to regulate these assets without stifling innovation.

  US Regulatory Landscape: The SEC and treasury department are actively developing regulations, focusing on consumer protection and financial stability.

  European Union (MiCA): The MiCA regulation provides a comprehensive framework for crypto-assets, including stablecoins, setting requirements for issuers and service providers.

  Global Coordination: the Financial Stability Board (FSB) is working to establish international standards for stablecoin regulation to prevent regulatory arbitrage.

  The future of stablecoin governance likely involves a tiered approach, with different regulations applied based on the type of stablecoin and its systemic importance. Central Bank Digital Currencies (CBDCs) also pose a potential challenge and opportunity, possibly competing with or complementing private stablecoins.

  Stablecoins and Remittances: Disrupting Traditional Finance

  One of the most impactful use cases for stablecoins is in the realm of international remittances.traditional remittance services frequently enough charge high fees and involve lengthy processing times. Stablecoins offer a faster,cheaper,and more accessible alternative,particularly for individuals sending money to developing countries.

  Case Study: venezuela: Due to hyperinflation and currency controls, Venezuelans have increasingly turned to stablecoins, particularly USDT, to preserve their savings and receive remittances from abroad. This has provided a lifeline for many families struggling with economic hardship.

  Benefits of Stablecoin Adoption

  Reduced Transaction Costs: lower fees compared to traditional banking and remittance services.

  Faster Settlement Times: Near-instantaneous transactions, especially compared to international bank transfers.

  * Increased Financial Inclusion: Access to financial