New Elevandi report: How stablecoins can help improve cross-border payments

Stablecoins like USDC and EURC are poised to play a growing role in the evolving cross-border payments landscape, helping people and businesses move financial value faster and with less friction. Cross-border payments are an ideal real-world use case for blockchain infrastructure, which connects nearly anyone, nearly anywhere, while offering a pathway to financial services to more than a billion people who lack access to the banking system.

This summer, Circle participated in the Point Zero Forum in Zurich, Switzerland. Hosted by Elevandi, this annual meeting brings together regulators, policymakers, and leaders from the private sector to drive a shared vision for how technology can be harnessed for a better global financial system.   

A signature session of the Point Zero Forum centered on digital assets and cross-border payments. Dante Disparte, Circle Chief Strategy Officer and Head of Global Policy, took part in a wide-ranging discussion with leaders from banks and fintechs that began to map out a new era for global payments. 

Roundtable participants agreed we are on the cusp of a new way forward that will be marked by both competition and convergence as traditional and upstart payments firms create solutions that drive down friction and costs while improving accessibility to unlock more economic potential in underdeveloped countries.
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Competition or convergence?

Elevandi has published a new report with the full findings from this lively dialogue. “Competition or Convergence? Mapping a New Era for Global Payments.” Authored by Circle’s Josh Burek and David Anderson, the report covers the following topics.

• As cross-border payment flows top $150 trillion annually, veteran and challenger financial institutions are both competing and collaborating to better serve the market.

• While legacy financial infrastructure has achieved impressive scale and reliability, its patchwork of third-party processors, services, and networks impose costs, delays, and inefficiencies that limit interoperability and financial inclusion. 

• Money that is fit for purpose in the always-on global economy should be device-centric and internet-native. This means enhancing the rails on which money can travel and shifting from siloed spreadsheets, message passing, and manual reconciliation to the blockchain. The rapid rise of tokenized cash – in the form of stablecoins like USDC – reflects a fundamental upgrade that gives fiat currency the powers of the internet. 

• Powered by deep connections with the banking system, tokenized cash can drive the next evolution of global payments. Firms of various types are exploring ways to drive cross-border payment efficiencies and extend financial access to the world's 1.4 billion unbanked. These efforts will accelerate as regulatory clarity continues to emerge  and the demand for financial interoperability rises.
   

USDC cross-border payments are already here

Circle is already a leader in building USDC cross-border payments solutions for businesses around the world. Using Circle’s platform, including USDC and programmable wallets, businesses can set up end-to-end cross-border payments infrastructure with just a few lines of code and take advantage of near-instant 24/7 settlement where dollars are transferred directly from sender to receiver.

Read the report to learn more.