Emerging Market Stablecoin Premiums Average 4.7%, Dependence Increasing - Report

Emerging Market Stablecoin Premiums Average 4.7%, Dependence Increasing - Report

Stablecoin premiums in 17 emerging market countries average 4.7% for businesses and individuals, according to a report by the Centre for Economics and Business Research (CEBR) and BVNK. In countries where there's high inflation or increasing economic risk, this premium can be significantly higher. For example, in Argentina, the stablecoin premium is close to 30%. Stablecoins have become a crucial medium of exchange in countries with unstable local currencies or limited access to the US dollar. The report suggests that dependence on stablecoins is only increasing in these countries. One reason for this is that stablecoins offer a stable alternative to volatile cryptocurrencies such as Bitcoin. They are also easier to use and transfer than traditional fiat currencies. As the adoption of stablecoins continues to grow, it is important to understand the risks involved. One of the main risks is that stablecoins are not backed by the same regulations as traditional fiat currencies. This means that if there is a problem with the issuer, investors could lose their money. It is also important to be aware of the fees associated with using stablecoins. These fees can vary depending on the issuer and the platform that you are using.