BIS report reveals stablecoins are mostly used within crypto trading and DeFi, with limited adoption for payments. Global jurisdictions are increasingly regulating stablecoins and cryptoassets.
The Bank for International Settlements (BIS) has released its annual survey on Central Bank Digital Currencies (CBDCs) and crypto, revealing that stablecoin adoption outside the crypto ecosystem continues to remain very limited.
The survey, conducted in 2024 across 93 central banks – representing 78% of the world’s population and 94% of global GDP – highlighted that stablecoins are still primarily used within crypto trading and decentralized finance (DeFi). Out of the respondents, 28 were from advanced economies and 65 from emerging markets and developing economies.
Stablecoins remain largely confined to crypto trading
Stablecoins are digital tokens pegged to traditional currencies such as the US dollar (USDT), Euro (EURC), or Japanese Yen (JPYC). According to the BIS report, most central banks noted that stablecoin use for payments within their jurisdictions is negligible. Outside crypto trading, their application has been limited to niche areas such as domestic retail payments (20%), remittances (21%), and cross-border retail payments (20%). Only a handful of respondents reported minimal use for domestic wholesale payments (1%), cross-border payments (3%), and remittances (4%).
Also read: Crypto vs. SDRs: Rethinking Reserve Assets in a Digital Age
Growing regulatory action on stablecoins
Despite limited real-world usage, regulation around stablecoins is expanding. The survey found that 45% of jurisdictions have already enacted laws for stablecoins and other cryptoassets, up from 35% in 2023. Another 22% are in the process of developing or proposing regulatory frameworks. This means more than two-thirds of jurisdictions globally either already regulate or are preparing to regulate stablecoins.
Countries such as the USA, Hong Kong SAR, Singapore, and the UK are leading with bespoke stablecoin regulations. Meanwhile, Argentina, Australia, Brazil, Mexico, and the European Union are progressing toward broader cryptoasset regulatory regimes.
Commercial banks cautious on issuance
Only 8% of surveyed jurisdictions reported that commercial banks had issued stablecoins. Examples include ANZ (Australia), KBC (Belgium), BTG Pactual (Brazil), and Société Générale (France). These bank-issued stablecoins have generally been launched for specific purposes like crowdfunding, pension payments, intra-bank transfers, and bridging traditional finance with digital assets. However, the use of stablecoins in mainstream financial infrastructure—such as collateral, settlement assets, or investments—remains negligible.
Tokenisation and future opportunities
The BIS survey also revealed that 48% of jurisdictions saw private or public sector initiatives related to tokenisation of financial or real assets by the end of 2024. In 38% of cases, tokenised assets had already been issued, while others were piloting live issuance, particularly in advanced economies.
Implications for global finance and India
The report underscores the importance of consistent global regulation to avoid arbitrage risks and ensure consumer protection in the borderless world of cryptoassets. Stablecoin regulation, combined with innovations in CBDCs and asset tokenisation, presents central banks with a chance to rethink the role of central bank money.
For India, these findings highlight a critical opportunity: to explore CBDCs, stablecoins, and tokenisation models in a regulated manner, aligning innovation with economic growth.
