CRIPTO speculations dominate 600B cross-border payments: BIS report

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CRIPTO speculations dominate 600B cross-border payments: BIS report

Hundreds of billions of dollars in cross-border platypes in flow flow globally, primarily speculative investments, in accordance with the recent report of the Bank for international settlements (BIS).

BIS study, published 8. Maja found cross-border payments using two largest cryptocurrency, bitcoin (Btc) and ether (El) and two largest stableCOINS, USDT (USDTT) and USDC (USDC), a total of about 600 billion dollars during the second quarter of 2024. year, the final observation period covered by the analysis.

“Our findings expire speculative motives and global funding conditions as key drivers of the native krupto flows,” BIS said.

However, the report noted that stableciene and low-timber bitcoin transactions often drive cases of practical use, especially as alternatives to traditional remittances. Researchers pointed out that geographical barriers have less influence on cryptocurnancy transactions compared to traditional financial systems.

Speculative crypto activity remains related to “global funding conditions in the main crypto markets” that signals the growing “mutual” mutuality “between the cryptocurri and inherited financial system, researchers said, adding:

“At the same time, we note that according to the conditions of global funding, they are known to take risks in traditional funding lessons, this indicates an increase in interconnectedness between cryptoases as speculative assets and major finances.”

In addition, crypto-specific risks and increased public awareness are significantly affecting the crypts of investment flows, intensifying their role as speculative means, in accordance with BIS.

The findings were published for almost a month after BIS warned that The Number of investors and the amount of capital in crypto and decentralized finance (defi) he “reached a critical mass”, posing a threat to financial stability and global inequality of wealth, cointelegraph reported 19. April.

Stablecoin, Payment BitCoin Low value FIAT inflation, high transfer costs

In addition to speculative investment tools, StableCoins and Bitcoin are also used as “transaction media”.

“Higher opportunity The cost of using the FIAT currency, such as high inflation, encourage bilateral cross-border transactions in both invalid cryptoasete and stablecoins,” BIS, adding:

“Likewise, greater economic activity within the Sender and Receiver countries is often associated with increased crypt’s flows in most cases.”

High remittance fees that traditional financial institutions charge further bolsters CRIPTO adoption for international money transfers, especially from developed economies in emerging markets, the report said.