Stablecoin Adoption Diverges Between Global North and South

Stablecoins have emerged as a pivotal bridge between traditional finance and cryptocurrency markets, but their utility varies dramatically across economic landscapes. In the U.S. and other developed markets, regulatory frameworks like the GENIUS Act are shaping them into yield-bearing instruments for institutional and retail use. Meanwhile, in emerging economies, they serve as critical tools for hedging against inflation and facilitating low-cost remittances—though without the yield opportunities available elsewhere.

The sector's valuation surpassing $280 billion underscores its growing importance, with projections pointing to a $2 trillion market by 2028. This rapid expansion has spurred legislative action in the U.S., while other nations monitor developments closely. The bifurcation raises pressing questions about risk exposure and equitable access, particularly for unbanked populations reliant on stablecoins for basic financial services.