Stablecoins are gaining recognition for their transformative potential in global commerce. However, they currently account for only 0.2% of e-commerce transactions, as highlighted in a recent report by Quinlan & Associates and IDA published on November 27. This report points out that the limited availability of non-USD stablecoins is a major barrier to broader adoption. **Stablecoins’ Untapped Potential** **Current Usage** Cryptocurrencies, including stablecoins, contribute minimally to global e-commerce transaction value, at just 0.2%.
Dominating the $200 billion market cap are stablecoins like Tether (USDt) and USD Coin (USDC), which are overwhelmingly pegged to the U.S. dollar. **Barriers to Adoption** **Regulatory Uncertainty:** A striking 81% of merchants identify unclear regulations as a significant barrier to accepting stablecoins as payment. **Lack of Non-USD Options:** With 83% of nations not utilizing the USD as their primary or secondary currency, there is an increasing demand for stablecoins linked to other currencies. **The Case for Non-USD Stablecoins** **Market Gap** Nearly 40% of global payments are conducted in currencies other than the USD, illustrating the necessity for alternative stablecoins.
IDA plans to introduce a stablecoin pegged to the Hong Kong dollar to streamline cross-border transactions between Hong Kong and the global market. **Benefits of Stablecoins** Lawrence Chu, co-founder of IDA, emphasizes that stablecoins provide: - Cost efficiency along with round-the-clock availability. - Greater transparency and programmability compared to conventional financial systems. **Growing Demand and Regulation** **Impact on US Treasury Bonds** The U.S.
Treasury Department has reported that stablecoins backed by Treasury bills have slightly bolstered demand for short-term government securities. **Legislative Outlook** Former Senator Pat Toomey has indicated that stablecoin regulations could move forward by 2025, concentrating on reserve requirements and jurisdictional clarity.
Notable legislative efforts include Senator Bill Hagerty’s Clarity for Payment Stablecoins Act, aimed at tackling regulatory obstacles. **Conclusion: Unlocking Stablecoin Potential with Non-USD Options** This report highlights the significant untapped potential of stablecoins within global commerce, showcasing the critical need for diversification away from USD-backed alternatives.
As regulatory clarity improves and innovative stablecoins are introduced, the integration of digital assets into mainstream payment solutions may gain momentum, potentially transforming the global financial ecosystem..