B2B payments provider BVNK and Cebr have released a new report that analyses the economic impact of stablecoins. The report examines the impact of stablecoins, which currently hold a market capitalization of USD 160 billion, and identifies a measurable relationship between their usage and economic outcomes.

The analysis highlights how stablecoins, primarily pegged to the US dollar, can mitigate the economic costs associated with local currency volatility in emerging markets. The report reveals that, since 1992, currency fluctuations have resulted in an average GDP loss of 9.4% across 17 countries studied, with significant impacts in Indonesia (USD 184 billion) and Brazil (USD 172 billion). It also indicates that stablecoins can help protect consumer savings and business finances from inflation and the adverse effects of currency devaluation.

Stablecoins also serve as a digital substitute for the US dollar, meeting the demand for a stable global currency in areas with restricted access. The study found considerable demand for stablecoins in emerging economies, with businesses and consumers willing to pay an average premium of 4.7% over the standard dollar price. It is estimated that by 2027, these 17 countries will collectively pay USD 25.4 billion in premiums to access stablecoins.

Stablecoins and cross-border payments Current cross-border payment systems often result in delays, causing working capital to be tied up and requiring financial institutions to maintain pre-funded accounts to manage risk. Cebr’s analysis identified USD 11.6 billion in working capital held in pre-funded accounts across four major B2B payment routes, representing a significant opportunity cost for businesses. According to the report, in 2024, cross-border stablecoin transactions are projected to total USD 2.8 trillion, expediting fund transfers by 3-6 days on the studied routes.

By 2027, the use of stablecoins is forecasted to generate a USD 2.9 billion economic benefit for businesses across these routes, which represent about 10% of cross-border payment volume. The near-instant settlement capability of stablecoins also removes the need for pre-funding, potentially freeing up more than USD 5 trillion in locked capital. Representatives from BVNK US noted the challenges businesses face with current cross-border payment systems and highlighted the potential benefits of stablecoins in improving capital efficiency and liquidity.

Officials from Cebr pointed out that stablecoins could address issues caused by slow payment systems and local currency volatility and emphasised that faster stablecoin transactions could unlock USD 2.9 billion in additional economic output by 2027 for payment routes representing approximately 10% of cross-border payments. .