Stablecoin Volumes Reach $450 Billion Monthly While Bitcoin Rises

Regardless of one’s opinion on Bitcoin
Bitcoin
, it is now generally acknowledged that it is not a passing fad. Wall Street trades it, politicians appeal to its supporters, intergovernmental agencies examine it and regulators have begun to vigorously scrutinize the cryptocurrency industry it birthed. But Bitcoin’s adoption and success as a political movement, now largely taken for granted, has come with ideological compromises that some early supporters may eschew.

Bitcoin’s offshoots have gained global popular appeal too. A report co-authored by Visa and Castle Island Ventures, published earlier this month, argues that stablecoins, which are crypto tokens pegged to the US dollar, are being used globally in countries like Turkey, Argentina, and Nigeria as an easy way for locals to receive payments or save in a stable currency. Stablecoin transaction volumes were estimated at $450 billion per month—roughly half of the just over $1 trillion that Visa processes monthly.

Bitcoin began as a form of protest against the 2008 global financial crisis. Today, bitcoin’s price currently hovers around $60,000, up 100 times from a decade ago and approximately six times its value from five years ago. The price of bitcoin was of interest only to a limited subculture 10 years ago, but it is now common knowledge in financial circles. The price of bitcoin is reported daily on mainstream financial news. Publications once considered conservative bulwarks of the financial system now print bitcoin’s price alongside the S&P 500 and gold. This shift makes sense: multiple bitcoin ETFs hold $60 billion in bitcoin, with daily volume exceeding a billion dollars on Wall Street.

Bitcoin today is not solely a Wall Street phenomenon. It has impacted global politics and macroeconomics. In 2023, the Washington-based International Monetary Fund, often considered the global financial establishment’s ‘Lender of Last Resort,’ put out a paper on crypto arguing that:

… while the supposed potential benefits from crypto assets have yet to materialize, significant risks have emerged. These include macroeconomic risks, which encompass risks to the effectiveness of monetary policy, capital flow volatility, and fiscal risks.

The IMF has acted on its own advice. In 2022, the IMF’s bailout of Argentina included provisions that forced the government to adopt a strong anti-crypto stance.

Nor is it not only Washington-based central bankers who have taken notice. In 2022, Iran ran a pilot test to use cryptocurrencies using cryptocurrencies for trade to circumvent OFAC sanctions. In 2024, the US treasury sanctioned…