BIS survey finds stablecoins are rarely used for payments outside crypto, mainly confined to trading and DeFi. Global jurisdictions are increasingly regulating stablecoins and cryptoassets
A recent survey by the Bank for International Settlements (BIS) has revealed that stablecoins are still largely confined to the crypto ecosystem and are rarely used for payments outside of crypto trading and decentralized finance (DeFi).
The BIS annual survey, conducted in 2024, covered 93 central banks worldwide, representing 78% of the global population and 94% of global economic output. Of the respondents, 28 were from advanced economies, while 65 represented emerging markets and developing economies. Notably, 73 central banks had also participated in the previous year’s survey.
Stablecoins Mostly 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 findings, most central banks reported that stablecoin use for payments in their jurisdictions remains negligible. Outside crypto trading and DeFi, usage is largely limited to niche areas, including domestic retail payments (20%), remittances (21%), and cross-border retail payments (20%). Only a few central banks reported minor use for domestic wholesale payments (1%), domestic retail payments (1%), cross-border payments (3%), and remittances (4%).
Also read: “Legal Vacuum Can’t Last”: Indian Courts Push for Crypto Clarity
Regulatory Landscape Expanding
While real-world usage of stablecoins is limited, global regulation is growing rapidly. The BIS survey shows that:
- 45% of jurisdictions have enacted laws regulating stablecoins and other cryptoassets, up from 35% in 2023.
- Another 22% of jurisdictions are developing or proposing regulatory frameworks.
This means that more than two-thirds of jurisdictions worldwide either already regulate or are preparing to regulate stablecoins. Countries such as the USA, Hong Kong SAR, Singapore, and the UK have implemented or are finalizing tailored regulations specifically for stablecoins. Meanwhile, Argentina, Australia, Brazil, Mexico, and the European Union are working on broader cryptoasset regulation frameworks.
Commercial Banks Cautious on Issuance
The survey found that only 8% of 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 were mostly designed for specific use cases such as crowdfunding, pension payments, intra-bank or intra-group transfers, and bridging traditional finance with digital assets. Use of stablecoins in mainstream financial market infrastructure—as collateral, settlement assets, or investment instruments—remains negligible.
Tokenisation Initiatives Growing
Nearly 48% of responding jurisdictions reported private or public sector engagement in tokenisation of financial or real assets by the end of 2024. In 38% of cases, tokenised assets have already been issued, while other jurisdictions are piloting live issuance. Most of these initiatives have taken place in advanced economies.
Implications for Global Finance and India
The BIS survey emphasizes the need for consistent international standards to prevent regulatory arbitrage in the borderless world of cryptoassets and to protect consumers and investors. Stablecoin regulation, combined with innovations in CBDCs and asset tokenisation, provides central banks with an opportunity to rethink the role of central bank money.
For India, these findings highlight a key opportunity to experiment with CBDCs, stablecoins, and tokenisation models in a regulated framework, potentially driving economic growth while promoting responsible innovation.
