Financial Inclusion and Remittance: Stablecoins Deliver Low-Cost US Dollar Access for the Underbanked
For the billion-plus unbanked globally, and those in emerging markets struggling with currency volatility and high fees, stablecoins offer a pathway to financial freedom and stable US Dollar access. These programmable digital assets are transforming remittances and daily payments by providing a service that is dramatically cheaper and more accessible than traditional banking systems.
Low-Cost Remittances: Bypassing Banking Networks
Traditional systems disproportionately burden emerging markets. The global average cost for sending a $200 remittance hovers at 6%—about $12.13—of the principal amount. Stablecoins democratize finance by eliminating the need for a bank account; users only require a smartphone and a digital wallet.
Using stablecoins, a $200 remittance from the U.S. to Colombia could cost less than one cent, effectively bypassing complex and costly correspondent banking networks. While certain Layer 2 networks like Base offer transaction fees of less than $0.01, users must account for variable on- and off-ramping charges when converting stablecoins back to local fiat currency.
In the critical Mexico–U.S. corridor, fintechs are making significant inroads: Bitso processes up to 10% of remittance volumes using this technology.
Lifelines in Volatile Emerging Markets
In regions facing local currency weakness and high inflation, stablecoins are adopted out of necessity, not speculation, acting as a safe, cheap, and inflation-resistant way to save and spend. Over 40% of stablecoin users in emerging economies rely on them for daily transactions, such as retail and bill payments.
This adoption is particularly strong in several key regions:
Turkey: $38 Billion in Stablecoin Adoption
Turkey saw stablecoin purchases totaling $38 billion in the 12 months to March 2024, representing 4.3% of the country's GDP. This massive adoption reflects citizens' need for stable value storage amid currency volatility.
Sub-Saharan Africa: 43% of Crypto Volume
In Sub-Saharan Africa (SSA), stablecoins accounted for 43% of total crypto transaction volume in 2024. Nigeria alone processed nearly $22 billion in stablecoin transactions between July 2023 and June 2024.
South Africa: Beyond Bitcoin
In South Africa, stablecoins have displaced Bitcoin as the most used cryptocurrency. Businesses across Africa rely on stablecoins (predominantly USDT) to bypass FX shortages and banking delays, enabling money to move quickly and predictably. Some South African companies are even running payroll on stablecoin rails.
Bridging the Digital and Physical Divide
To accelerate financial inclusion for the underbanked, adoption is being streamlined through integrations into widely used consumer platforms. Apps like Venmo, Apple Pay, PayPal, and Cash App now support stablecoins, easing the onboarding process.
Strategic Partnerships Expanding Access
Partnerships are also bridging the digital asset ecosystem with physical access points:
PayPal's Global Reach: PayPal's Xoom service has partnered with Yellow Card (a stablecoin infrastructure startup operating in 20 African countries) to enable international transfers using PayPal USD.
Physical Cash Integration: Initiatives are underway to allow users to convert physical cash to USDC and withdraw cash at MoneyGram locations, furthering accessibility.
Yield Sharing Programs: Issuers like Circle and Tether are sharing yields with partners, creating incentives for businesses to convert users and keep funds on-chain, much like equitable credit card rewards programs.
Real-World Impact Stories
Case Study: Mexican Remittances
Maria, a domestic worker in Los Angeles, sends $300 monthly to her family in Oaxaca. Previously paying $18 in fees through traditional services, she now uses stablecoins and pays less than $0.50, saving over $200 annually while her family receives funds instantly.
Case Study: Nigerian E-commerce
A Lagos-based online retailer switched to USDT payments to avoid naira volatility. The business now maintains stable pricing, improved cash flow, and expanded to serve customers across West Africa without currency conversion losses.
Case Study: Turkish Savings
Small business owners in Istanbul increasingly hold USDT as a hedge against lira devaluation. Local exchanges report 300% growth in stablecoin adoption among SMEs seeking to preserve purchasing power.
Regulatory Framework Development
As the regulatory landscape matures globally, with frameworks like the GENIUS Act in the U.S. and MiCA in the EU, the trust and compliance required for widespread adoption among non-banks and fintechs will continue to grow. These regulations provide:
- Consumer Protection: Clear guidelines for stablecoin issuers and service providers
- Compliance Standards: AML/KYC requirements that build institutional trust
- Innovation Support: Regulatory sandboxes for fintech experimentation
- Cross-Border Coordination: International standards for seamless global operations
The Path Forward: Building Inclusive Finance
Stablecoins are positioning themselves as the foundation for a more efficient and inclusive financial system. Key developments driving adoption include:
Infrastructure Improvements: Layer 2 solutions reducing transaction costs to near-zero
User Experience: Simplified wallet interfaces and mobile-first design
Merchant Adoption: Growing acceptance at retailers and service providers
Government Support: Pilot programs and regulatory clarity in key markets
Conclusion: Democratizing Global Finance
The transformation from traditional remittances to stablecoin-powered transfers represents more than cost savings—it's about financial dignity and inclusion. For the first time in history, anyone with a smartphone can access stable, programmable money without requiring a bank account or credit history.
As infrastructure continues to mature and regulatory frameworks solidify, stablecoins will play an increasingly vital role in bringing financial services to the underbanked and creating a more equitable global economy. The future of finance is not just digital—it's inclusive.