The International Monetary Fund (IMF) has conducted stablecoin research that supports the view that stablecoins result in a net flow of dollars from the United States to the rest of the world (RoW), and especially to jurisdictions with more volatile exchange rates.
Total dollar stablecoin flows are highest in Asia and the Pacific (APAC) followed by North America1. However, as a proportion of GDP, stablecoin flows are far higher in Africa and the Middle East (MEA) and Latin America and the Caribbean. These two regions also showed the highest proportion of international payments.
There was a significant difference between the average transaction size between regions, but the median figure was highest in Europe.2 Separately, the paper found a correlation between exchange rate volatility and stablecoin flows.
One of the most interesting aspects of the research was the methodology used. A considerable proportion of stablecoin analysis by public institutions is based on Chainalysis data. The IMF generated data independently using a novel methodology. While some of the results reinforced findings based on Chainalysis data, others are markedly different – particularly relating to net US flows and Chinese flows.
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