Stablecoins are used for cross-border payments
The UK’s financial regulator found that stablecoins offer the biggest near-term benefits for cross-border payments.
Stablecoins provide advantages in emerging markets with limited access to US dollars.
Participants noted that domestic UK consumers have little incentive to switch to stablecoins due to existing fast and inexpensive payment methods.
The findings informed the regulator’s final rules requiring UK-issued stablecoins to be fully backed by reserve assets.