Stablecoins Seen as New Transformation in Global Money Transfer System

Jakarta, Pintu News – Stablecoins, a type of cryptocurrency whose value is pegged to a stable asset such as the US dollar, are gaining attention as a modern solution to the global money transfer system. Venture capital firm Andreessen Horowitz (a16z) even calls stablecoins’ presence in the world of finance like WhatsApp’s moment in the world of communication.

This technology is considered to be able to simplify the process of sending money across countries, reduce costs, and eliminate dependence on traditional intermediaries. This phenomenon is one of the major changes in crypto adoption in the international financial sector.

The Role of Stablecoins in Simplifying Money Transfers

In the conventional financial system, cross-border money transfers often involve many intermediaries such as correspondent banks, payment card networks and other financial institutions. The presence of these multiple parties causes the cost of money transfer to be high and the process to be time-consuming. For example, to send $200 or around Rp3.4 million (1 USD = Rp16,995) from the United States to Colombia, users can be charged up to $12.13 or around Rp206,237.

With stablecoins, the cost of sending money can be drastically reduced to just $0.01 or around Rp170. In addition, the transfer process becomes much faster and more efficient as it runs on a blockchain network with no additional intermediaries. This allows international transactions to be done almost instantly and at almost no cost.

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Stablecoin Usage Expands to Business Transactions

Not only used for individual remittances, stablecoins are also starting to be widely adopted by large companies for business transaction needs. One obvious example is Elon Musk’s tech company SpaceX, which has utilized stablecoins to manage its cash and hedge its assets against currency exchange rate fluctuations.

In international business transactions, such as sending funds from Mexico to Vietnam, stablecoins enable significant cost savings. Previously, such transactions could take 3 to 7 days and cost between $14 and $150 for every $1,000 transacted. Stablecoins make these transactions possible much faster and at a much lower cost.

Regulatory Challenges in Stablecoin Adoption

While they offer many advantages, the adoption of stablecoins also faces regulatory challenges. Financial authorities in various countries are still figuring out the best way to regulate the use of stablecoins in the official financial system. One of the main obstacles is ensuring that the use of stablecoins remains compliant with anti-money laundering and consumer protection requirements.

However, steps towards clearer regulation are beginning to emerge. Some policymakers in the United States have begun drafting specific rules for stablecoins, to ensure the technology can be used legally while remaining safe and controlled. Clear regulation will hopefully provide a bridge between traditional finance and the crypto ecosystem.

Stablecoin Market Growth in the Crypto World

The growth of stablecoins in the cryptocurrency world continues to show significant numbers. According to a recent report, the total market capitalization of stablecoins has surpassed $200 billion or around Rp3,399 trillion. In addition, the value of stablecoin transactions in a year has reached $15.6 trillion, exceeding the annual transaction volume of Visa and Mastercard.

This figure shows how stablecoins are slowly becoming an important part of the global financial infrastructure. Stablecoins not only provide solutions for individual remittances but are also capable of supporting the financial activities of large corporations and institutions across borders.

Conclusion

Stablecoins are now seen as one of the most important innovations in the world of crypto and digital finance. With their ability to cut costs, speed up the transfer process, and reduce reliance on traditional intermediaries, stablecoins have the potential to revolutionize the global financial system.

However, regulatory challenges remain to ensure the technology can develop in a healthy and safe manner. In the coming years, stablecoins are expected to continue to be a central part of cryptocurrency adoption globally.

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This content aims to enrich readers’ information. Pintu collects this information from various relevant sources and is not influenced by outside parties. Note that an asset’s past performance does not determine its projected future performance. Trading crypto carries high risk and volatility, always do your own research and use cold hard cash before investing. All activities of buying andselling Bitcoin and other crypto asset investments are the responsibility of the reader.

Reference:

• Aoyon Ashraf/Coindesk. Stablecoins Are ‘WhatsApp Moment’ for Money Transfers, a16z Says. Accessed April 10, 2025.
• Featured Image: The image created by AI