Stablecoins are a big force in the crypto sector. For example, they are a safe haven during volatility. However, they are also one of the biggest on-chain economies. Their current market cap is $237 billion. The current crypto market cap is $3 trillion.
So, stablecoins take 12.5% of that market cap for their account. Base is now tackling international stablecoin payments. In other words, this is a big market. So, let’s see how international stablecoin payments can play an important role.
International Stablecoin Payments
Currently, international stablecoin payments are expensive and inefficient. They require various off-chain FX swaps. These are not cheap, and each swap adds to the tally. They also rely on local liquidity. This is ineffective.
For example, swapping the Turkish Lira for the Indonesian Rupiah. This takes 5 steps in the current setup. In a future state, this will drop various steps. See the picture below:
Source: X
However, Base plans to change this. It wants to bring all countries’ currencies on-chain. This will optimize on-chain routes. It currently offers 10 local currency stablecoins on chains in 9 countries. See the picture below.
Source: Base international stablecoins
The Base blockchain will offer single on-chain FX swaps. These are much more cost-effective. It will also leverage deep global liquidity, which makes it much more efficient.
Nonetheless, we also see more countries establishing local liquidity currency markets. Still, international on-chain stablecoin payment options are far and beyond. Stellar is one of the other chains that offer this.
On Stellar, for instance, you can deposit the Lira at a MoneyGram-supported location. Now you receive $USDC directly to your wallet. You can now send and receive $USDC globally using various noncustodial wallets. This is MoneyGram Access on Stellar.
5/ @MoneyGram, in collaboration with SDF, rolled out MoneyGram Access. Wallets or applications can now enable users to convert their physical cash into digital dollars and back. @DenelleDixon shares more
pic.twitter.com/17XX6eCL1T
— Stellar (@StellarOrg) July 29, 2022
This started in 2021. Three years down the line, you can cash in in over 40 countries and cash out in over 170 countries. Stellar has now also over 30 wallets integrated.
So, to sum up, Base is catching up and is one of the first players in this market. This opens the doors to convenient, cheap, and easy-use international stablecoin payments.
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