Bank for International Settlements releases paper on stablecoin cross-border payments subject to deposit and withdrawal costs and liquidity restrictions

The Bank for International Settlements has released Working Paper No. 1385, analyzing the application of stablecoins in cross-border payments. The paper points out that stablecoins can reduce dependence on correspondent banks and SWIFT through networks such as Ethereum, Solana, and Tron, and lower transfer fees. However, the exchange process between fiat and stablecoins still involves transaction, withdrawal, and deposit/withdrawal fees, and the lack of market depth limits the cost advantage of large payments. (Source: Bank for International Settlements)