Last year, nearly $35 trillion worth of financial transactions were conducted using stablecoins; however, only one percent of these transactions were related to real-world payments such as money transfers and salary disbursements. This indicates that the vast majority of stablecoin activity involved trading, investment, or other financial operations rather than everyday financial needs. Stablecoins are cryptocurrencies typically pegged to stable assets like the US dollar to minimize price volatility. They are primarily used on digital platforms for payments and financial exchanges due to their speed and low transaction costs. Despite the large market volume, stablecoins remain mostly confined within the digital financial ecosystem and have not yet gained widespread popularity for fulfilling common users’ daily financial requirements. This limited adoption may be attributed to ongoing legal and regulatory challenges that restrict sector growth. In the future, stablecoins could see increased use in real-world payments if regulatory frameworks become clearer and consumer trust grows. Furthermore, proactive adoption by financial institutions and governments could enable stablecoins to play a significant role in the digital economy. Nevertheless, investors and users must remain aware of the current market limitations and associated risks.
Source: coindesk
