Stablecoins are finding product-market fit in emerging markets

Stablecoins are gaining traction in emerging markets for cross-border payments, consumer finance and payroll, according to the article. SpaceX turned to stablecoins through Bridge, which Stripe later acquired for more than $1 billion, after local banks in Africa, Latin America and Asia struggled with international payments. Yellow Card's annual transaction volume doubled to $3 billion in 2024 from $1.5 billion in 2023, and an a16z figure cited in the article puts a $200 U.S.-to-Colombia transfer at under $0.01 in stablecoins versus $12.13 by traditional methods. The article also notes concerns about monetary policy, dollarization and the reliance on private issuers such as Circle and Tether.