WTO: Stablecoins Account for Just 3% of Global Trade Payments Amid Regulatory Fragmentation

The World Trade Organization (WTO) has identified inconsistent regulatory frameworks as the primary barrier preventing stablecoins from being widely adopted for international trade payments, despite their potential to enhance payment efficiency.

On April 14 (local time), Juan Marcetti, Director of WTO's Services Trade and Investment Division, stated at a Geneva event presenting a research report on "Stablecoins in Global Trade" that the main constraint is not technology but regulatory gaps. He cited a Financial Stability Board (FSB) report from October 2023, noting only 11 out of 28 jurisdictions (39%) have fully established stablecoin regulations.

Due to regulatory uncertainty, stablecoins currently account for just about 3% of global trade payments. However, cross-border payment volume using stablecoins has grown approximately 35 times from 2020 to mid-2024.

The WTO analysis suggests stablecoins could address five key issues in trade finance: high costs, slow processing speeds, limited accessibility, insufficient transparency, and foreign exchange restrictions. Developing countries stand to benefit significantly, though their relatively underdeveloped regulatory frameworks are hindering adoption.

Marcetti emphasized that stablecoin contributions to trade will depend more on regulatory convergence, interoperability, and surrounding financial infrastructure than on technology itself, particularly for developing nations that could gain the most benefits.

Global payment providers are also expanding stablecoin use. Mastercard recently partnered with Borderless, a stablecoin infrastructure provider, to test cross-border stablecoin remittance services. Western Union also launched digital wallets and Visa-branded cards supporting dollar-based stablecoins in 37 markets this month, in collaboration with Rain.