McKinsey: Stablecoins emerge as a faster, cheaper remittance solution

Stablecoins are increasingly used as an alternative to traditional international payment networks, thanks to lower costs and faster processing times. A McKinsey report shows that cross-border payments exceeded $179 trillion in 2023, with demand for faster and cheaper solutions on the rise.

PayPal has begun using its own stablecoin, PYUSD, to process payments through Xoom, bypassing the restrictions imposed by conventional banking hours. The company promotes digital currencies as a way to reduce fees and improve access to financial services.

Financial consultants argue that stablecoins can improve the efficiency of companies with global operations, offering faster settlement times and lower remittance costs. Mark Nichols of Ernst & Young noted that corporate interest in these instruments is growing, especially in e-commerce, payroll, and merchant services.

Stablecoin adoption could reduce processing times from several days to just seconds, as well as lower fees that, according to the World Bank, currently average 4.26% for sending $500 internationally.