
Stablecoin Growth Faces Hurdles from Persistent Forex Costs
Despite increased adoption and optimism, stablecoins are struggling to fulfill their promise as a global payments solution due to lingering foreign exchange (FX) costs. Traditional banking friction and limited FX access in emerging markets are diminishing the efficiencies stablecoins aim to deliver. Industry players note that anchoring to USD often alienates non-dollar users, while off-ramping into local currencies remains costly and complex. Developers are exploring innovations like FX-optimized stablecoins, but widespread utility is yet to materialize.
The challenges underline stablecoins’ reliance on traditional financial infrastructure — a key limitation for broader adoption.