Beyond Speculation: Researchers Highlight Real-World Stablecoin Use Cases

Stablecoins are not merely tools for speculative crypto trading; they are also employed in “real-world use cases.” This is evidenced by the findings of a study conducted by Castle Island Ventures, Brevan Howard, Artemis, and Visa Crypto.

“We felt a lack of information on how people actually use stablecoins worldwide, especially in emerging markets. Therefore, we commissioned a survey of 2,500 users from Brazil, Nigeria, Turkey, Indonesia, and India,” noted Castle Island Ventures managing partner Nic Carter.

He added that this is the first study of its kind, which is “very revealing in the context of real stablecoin usage.”

The report highlights that “stablecoins,” with their total capitalization of ~$170 billion, are an “undeniable killer app.”

Beyond trading, the most popular stablecoin use cases include converting crypto assets, payments for goods, remittances, and salary disbursements.

However, there are significant regional differences. For instance, the main “non-trading” use case in Turkey is earning income on invested funds; in Nigeria and partly in Indonesia, it is “storing money in US dollars.”

“For many Indonesians, stablecoins are more accessible than banking operations in US dollars. The requirements for registering on local crypto exchanges are simpler than those needed to open a bank account in US currency. Therefore, users face lower entry barriers,” noted representatives of the Pintu platform.

Users of the African trading platform Yellow Card reported using “stablecoins” for currency operations due to frequent restrictions on international transactions.

“As a result, people and businesses resort to stablecoins to maintain cash flow, continue importing goods, conduct business, and support their families,” the company noted.

The survey was conducted from May 29 to June 13, 2024, via the YouGov platform.

Earlier, analysts at CryptoQuant recorded an influx of USDT to cryptocurrency exchanges, which may indicate “increased long potential.”