Stablecoins’ Usage Outside Crypto Remains Limited, Finds BIS Survey

Conducted in 2024, the survey included responses from 93 central banks worldwide, 73 of which also participated in the previous edition. Collectively, these respondents represent 78% of the world’s population and 94% of global GDP. Among the participants, 28 were from advanced economies, while 65 hailed from emerging and developing markets.

A key takeaway from the survey is the limited use of stablecoins beyond the crypto ecosystem. Stablecoins, such as USDT (pegged to the US Dollar), EURC (Euro), and JPYC (Japanese Yen), are primarily used within crypto trading as a medium of value transfer. Central banks reported that their adoption for payments in domestic jurisdictions remains minimal. Outside crypto trading and decentralized finance, stablecoins are mostly used by niche groups for domestic retail payments (20%), remittances (21%), and cross-border retail payments (20%). Usage for domestic wholesale payments (1%), domestic retail payments (1%), cross-border payments (3%), and remittances (4%) is negligible.

Regulatory frameworks for stablecoins are gaining momentum. Currently, 45% of jurisdictions have enacted regulations for stablecoins and other cryptoassets, up from 35% in 2023, while 22% are in the process of proposing or developing such regulations. This indicates that more than two-thirds of global jurisdictions either regulate or plan to regulate stablecoins and cryptoassets. Most countries are developing bespoke regulations tailored specifically for cryptoassets rather than adapting existing financial rules. Examples of nations with tailored regulations include the USA, Hong Kong SAR, Singapore, and the United Kingdom, while Argentina, Australia, Brazil, Mexico, and the European Union have introduced or proposed broader cryptoasset frameworks.

The survey also found that only 8% of central banks reported commercial banks issuing stablecoins. Notable examples include ANZ (Australia), KBC (Belgium), BTG Pactual (Brazil), and Société Générale (France). These stablecoins are primarily targeted at niche use cases like crowdfunding, pension disbursements, intra-bank transfers, or bridging traditional finance and digital assets. Their use as collateral, investment instruments, or settlement assets remains minimal.

The BIS report stresses the importance of consistent international standards to prevent regulatory arbitrage, given the borderless nature of stablecoins. Harmonized regulations will support responsible innovation while safeguarding consumers and investors.

Tokenization of assets is also gaining traction. Nearly half (48%) of surveyed jurisdictions reported public or private sector involvement in financial or real asset tokenization by the end of 2024. While most initiatives were in the research or proof-of-concept stage, 38% of these jurisdictions have issued tokenized assets, and a similar share is piloting live issuance, predominantly in advanced economies.

Overall, the BIS survey highlights the evolving payments and settlement landscape. Innovations like CBDCs, stablecoins, and asset tokenization offer central banks a chance to rethink the role of central bank money. For India, these developments present a strategic opportunity to experiment with digital currencies, stablecoins, and tokenized assets, paving the way for enhanced economic growth.