Bitpace: Top 7 use cases for stablecoins
Stablecoins, a type of cryptocurrency designed to maintain a stable value, have seen explosive growth in recent years, surpassing $5 trillion across 1 billion transactions. Bitpace explores the most impactful applications of stablecoins in today’s world.
1. Cross-border payments
Stablecoins have transformed international money transfers, providing a cost-effective and fast solution for moving funds across borders. Payment infrastructures are advancing to enable instant transactions across borders. As domestic payment schemes become interconnected, cross-border payments are becoming faster and more seamless.
2. Value storage
In countries like Nigeria, Brazil, Venezuela, and Argentina, where traditional currencies have struggled, stablecoins can provide a stable store of value, protecting savings from devaluation and being a highly liquid asset.
3. Programmable money
Smart contracts enable automated, condition-based transactions using stablecoins. This programmability facilitates complex financial operations that execute automatically when predefined conditions are met—akin to sending an email with an attachment.
4. Remittances
Remittances are ultimately payments between one party to another; however, in underdeveloped nations, they can allow society to prosper. Stablecoins enable remittances to be faster and cheaper than other methods, demonstrating impressive efficiency and reducing transaction costs by 75% and settlement times by 90%.
5. Financial inclusion
Stablecoins can provide people who are unbanked or underbanked access to financial services, promoting financial inclusion in underserved communities. By breaking down barriers, they offer access to digital financial tools, bridging traditional banking and the digital economy.
6. Digital commerce
Stablecoins offer a stable medium of exchange for digital commerce and online payments. Stablecoins are increasingly used for e-commerce globally, enabling faster and more cost-effective transactions.
These payment technology trends highlight a future where digital commerce becomes more secure, efficient, and accessible than ever. Businesses that embrace these innovations through crypto payment gateways like Bitpace will be well-positioned to meet the evolving needs of their customers and gain a competitive edge in the digital marketplace.
7. DeFi applications
Stablecoins are the backbone of decentralised finance (DeFi), powering applications for lending, borrowing, and yield generation. They enable financial services to operate independently of traditional banking systems, creating new opportunities for users worldwide.
The stablecoin ecosystem continues evolving, with innovations focusing on broader access, enhanced programmability, and locally adapted solutions considering cultural and regulatory requirements. As adoption grows, these digital assets are becoming increasingly integral to the future of global finance.
About Bitpace
Bitpace is a crypto payment gateway providing seamless and reliable payment solutions. Developed by a team of fintech, payment, and product experts, Bitpace’s payment offerings empower businesses to accept crypto from their customers with fewer volatility or liquidity risks. Its diverse services facilitate global settlements in over 70 cryptos and 20 fiat currencies for the e-commerce, finance, and real estate sectors. Get paid in Bitcoin, Ethereum, Litecoin, and many more established cryptocurrencies with the Bitpace crypto payment gateway.
