The Bank for International Settlements (BIS) reported that speculative activity in cryptocurrencies is significantly influencing global cross-border payments, which accounted for approximately $600 billion in the second quarter of 2024. The report highlights that Bitcoin and Ether, along with stablecoins such as Tether and USDC, are primarily driving these transactions, which reflect crypto's increasing interconnectedness with traditional finance. While speculative motives are a key factor, the study also acknowledges that stablecoins and lower-value Bitcoin transactions are often adopted for practical use, acting as alternatives to traditional remittances, especially in regions with high inflation and costly transfer fees. Notably, the U.S. and U.K. combined for 20% of cross-border payments made using Bitcoin and USDC, with Russia and Turkey accounting for a significant share of USDT transactions. The report concludes that tighter global funding conditions affect crypto flows, revealing a complex relationship between crypto assets as speculative investments and mainstream financial systems.

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