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Encryption speculation dominates $ 600 billion in border: BIS report

cryptobizinvest.com May 12, 2025

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Hundreds of billions of dollars are flowing into the cross -border currency payments worldwide, driven primarily by speculative investment, according to a report issued by the Bank for International Settlements (BIS).

BIS study, Published May 8, boundary payments were found using the largest encrypted currencies, Bitcoin (BTC) And the fragrance (Eth) And the largest stablecoins, USDT (USDT) And USDC (USDCThe total of about 600 billion dollars during the second quarter of 2024, which is the final monitoring period covered by the analysis.

“The results we have highlighted highlighting the motives of speculation and global financing conditions as the main engines of the original encryption asset flows,” BIS said.

*The encryption assets are flowing across the border by a quarter. Source: Repeated*

However, the report indicated that Stablecoins and low -value Bitcoin transactions are often paid in practical use, especially as alternatives to traditional transfers. The researchers indicated that geographical barriers have a less impact on cryptocurrencies compared to traditional financial systems.

The researchers said that speculative encryption activity is still linked to “global financing conditions in the main encryption markets”, which indicates the increasing “interconnection” between cryptocurrencies and the old financial system, adding:

“At the same time, we note that the most compromised global financing conditions, known to reduce risks in traditional asset categories, are associated with reduced flows. This indicates an increase in interconnection between cryptocurrencies such as speculative assets and prevailing financing.”

In addition, the risks of encryption and public awareness significantly affect investment flows in encryption, which enhances its role as speculative assets, according to BIS.

The results were published nearly a month after Bis warned of this the The number of investors And the amount of capital in encryption and Decentralized financing (DefiCointelegraph said on April 19 that “he reached a critical bloc”, which is a threat to financial stability and inequality in global wealth.

Stablecoin, Bitcoin payment of low value fed by Fiat inflation, and high transfer costs

Beyond speculative investment tools, Stablecoins and Bitcoin are also used as a “transactions”.

“The highest alternative opportunity costs for the use of the FIAT, such as high inflation, stimulating dual -border transactions in both Cryptoassets and Stablecoins,” BIS, adding:

“Likewise, a larger economic activity is often associated with both the countries of the sender and the future by increasing encryption flows in most cases.”

The report stated that the high transfers charged by traditional financial institutions enhances the dependence of encryption for the transfer of international funds, especially from the advanced economies to emerging markets.