Stablecoin Remittances Offer Significant Savings Over Traditional Transfers
Written with artificial intelligence.
According to a recent report from Borderless.xyz, stablecoin remittances can be up to 84% cheaper than traditional money transfers, especially in emerging markets. Additionally, these transactions settle much faster than standard international bank wires.
Cost Savings of Stablecoin Remittances
A new report from Borderless.xyz reveals that stablecoin-funded remittances present remarkable cost advantages over traditional money transfer methods, particularly in emerging economies. For instance, sending a $200 remittance using stablecoins costs a median of 1%, or $2, compared to 6.36%, or $12.72, for conventional transfers, based on World Bank data. This results in stablecoin remittances being approximately 84% more affordable.
Savings Across Emerging Markets
The report highlights significant savings in various regions. In Sub-Saharan Africa, the cost of stablecoin remittances is 2.9%, while traditional transfers cost 8.46%. Similarly, in Latin America, stablecoin transfers cost 1.25% versus 5.64% for traditional methods.
Faster Settlement Times
Beyond cost, stablecoin transactions also offer quicker settlement times. For example, payouts in Brazil through the PIX network settle in a median of two minutes, while Mexico's SPEI network takes three minutes. In contrast, traditional SWIFT transfers typically settle by the next business day, with some taking up to three days.
Completion Rates Vary by Country
However, completion rates for payments differ by network. Mexico's SPEI network boasts a success rate of 98.6%, while Brazil's PIX follows closely with 97.8%. In Colombia, the PSE network completed 79% of transactions, and Costa Rica's SINPE recorded a lower rate of 73%. As stablecoin usage expands, transaction volumes are increasing, prompting expectations of a $2 trillion market by 2030, according to Standard Chartered.