The global payments landscape is preparing for another transformation, and it could be one of the most significant shifts in modern memory. Digital currencies are reshaping how money moves across borders. Stablecoins are gaining ground in emerging markets while central banks accelerate their own digital currency experiments.

According to a report by Atlantic Council, 137 countries & currency unions, representing 98% of global GDP, are exploring central bank digital currencies (CBDCs).

The convergence of these technologies promises to transform the cross-border payments industry, which is set to reach $320.73 billion by 2030. Based on insights shared during a panel on digital payments and DigiAssets 2024, this article explores the future of payments, from stablecoin adoption to international monetary policy.

Stablecoin Adoption in Latin America

Latin America has emerged as a proving ground for stablecoin adoption, driven by economic necessity and limited traditional banking infrastructure. The region's challenging macroeconomic conditions, characterized by high inflation and currency devaluations, have pushed consumers toward digital dollars as a reliable store of value.

Argentina Leads Digital Dollar Adoption

Argentina exemplifies this trend most dramatically.

"Argentina is one of the biggest countries in Latin America buying stablecoins,” said a panelist at DigiAssets 2024. "Their current inflation rate is 209%, which came down from 230%. So Argentinians are buying stablecoins to have digital dollars because they can't afford to buy US dollars through the bank.”

Argentine users have embraced USDT (Tether) as their preferred digital currency. This adoption pattern reflects a broader phenomenon where stablecoins serve as de facto savings accounts for populations facing currency instability.

"[Argentines’] interest in stablecoins highlights the role of crypto in unstable markets and how citizens are able to take better control of their financial futures by embracing cryptocurrency, regardless of official monetary policy,” said a report by decrypt.

The penetration runs deep across economic strata. Both consumers and businesses turn to stablecoins not only for cross-border payments but also for local transactions and savings. This dual-purpose usage signals a fundamental shift in how digital currencies integrate into everyday financial life.

Brazil Charts Regulatory Path Forward

Brazil has taken a different approach, becoming the first major Latin American economy to establish comprehensive crypto regulations. The Central Bank of Brazil brought cryptocurrencies under formal supervision in December 2022, indicating that widely used payment stablecoins could be treated as payment schemes requiring oversight.

Simultaneously, Brazil pilots its own Digital Brazilian Real while Brazilian fintechs actively use USDC and USDT for international transfers. This dual-track strategy suggests Brazil may formalize stablecoin usage through its robust payment system regulations, potentially requiring registration or partnerships with licensed payment institutions.

Asian CBDC Experiments Reshape Financial Rails

Asian central banks have positioned themselves at the forefront of CBDC development, with several projects moving from research phases into real-world testing. These initiatives represent the most advanced wholesale CBDC experiments globally, focusing on cross-border settlement efficiency.

China's Digital Yuan Scales Up

China's e-CNY remains the world's most mature retail CBDC, with cumulative transactions reaching 7 trillion yuan ($966.7 billion) since pilots began in late 2019. The digital yuan's expansion beyond China's borders marks a significant milestone in CBDC internationalization.

The Hong Kong Monetary Authority expanded e-CNY pilots by linking the digital currency to Hong Kong's Faster Payment System. This integration allows Hong Kong residents to top up e-CNY wallets without mainland bank accounts, facilitating merchant payments across the border. 

HSBC became the first foreign bank to offer e-CNY services for both retail and corporate clients.

Cross-Border Innovation Through mBridge

Project mBridge represents the most ambitious cross-border CBDC initiative, involving central banks from China, Hong Kong, Thailand, and the UAE. The project achieved minimum viable product status in June 2024, enabling real-value transactions and Ethereum Virtual Machine compatibility.

This milestone demonstrates practical feasibility for multi-CBDC platforms in wholesale cross-border payments. However, there are still barriers to the project, including political barriers.

"The push for mBridge can be dubbed as both a geopolitical and economic strategy aimed at circumventing potential sanctions imposed by Western countries,” said a report by ORF Online. Still, "mBridge’s success would signify a transformative shift in global finance, challenging the traditional dominance of Western financial structures and enabling a more decentralised and inclusive global economy.”

European Digital Euro Takes Shape

The European Central Bank's digital euro project represents the largest CBDC initiative by economic scale, covering the 20-member eurozone with a combined GDP exceeding $15 trillion. The ECB entered its preparation phase in November 2023, scheduled to run until October 2025.

Regulatory Framework Development

The ECB's systematic approach includes establishing a comprehensive rulebook for digital euro usage across member states. Seven workstreams have contributed to this process since May 2024, focusing on minimum user experience standards and risk management practices.

"The workstreams will report to the RDG (representing consumers, retailers, and intermediaries) in order to assist it in drafting various sections of the digital euro rulebook,” the ECB said in a release. "The rulebook sets out the framework for a new digital form of the euro which complements cash, and which consumers and businesses can use throughout the euro area.”

The goal mirrors the physical euro banknotes' universal acceptance throughout the currency union.

MiCA Implementation

The European Union's Markets in Crypto-Assets Regulation (MiCA) represents the world's most comprehensive regulatory framework for digital assets. It marks a pivotal moment in the global evolution of cryptocurrency regulation.

Under MiCA, stablecoins are classified into two distinct categories with specific regulatory obligations. This has led to significant market disruption, particularly affecting stablecoins that have not achieved compliance.

Tether's USDT, despite being the world's largest stablecoin, has faced restrictions across EU exchanges due to its non-compliant status.

"In Europe, under MiCA regulation, you need to get licensed to run stablecoins, which Tether doesn't have; only USDC has this,” said one DigiAssets panelist. "Our European entity has limited access to USDT, which causes us trouble because we still need access to Bitcoin-USDT trading pairs."

Issuers must provide fee-free redemption mechanisms and cannot pay interest on tokens, maintaining their function as payment instruments rather than investment vehicles.

Nonetheless, MiCA's comprehensive approach has established Europe as a global leader in crypto-asset regulation, providing a template that other jurisdictions are studying for their own frameworks.

Technology Infrastructure Progress

The ECB has also progressed in selecting potential providers for digital euro components and services. Following a call for applications with an estimated €432.1 million budget, selected bidders have been invited to tender. Almost 70 market participants, including merchants, fintech companies, banks, and payment service providers, have signed up to work with the ECB.

Engaging industry players will help the central bank build robust technological foundations for the digital euro ecosystem.

Significant Improvements to Remittance and Financial Inclusion

Stablecoins address fundamental inefficiencies in traditional cross-border payment systems. International remittances represent a significant market opportunity, with blockchain-based alternatives offering substantial improvements in speed, cost, and accessibility.

"Stablecoins are solving the problem of capital controls and excessive fees for using payments overseas,” said a DigiAssets 2024 panelist.

Infrastructure Advantages

Stablecoins on blockchain networks enable peer-to-peer value transfer without intermediaries, eliminating lengthy settlement times and reducing transaction costs. This infrastructure particularly benefits emerging markets, where demand for cross-border transactions to and from these regions shows notable growth.

"In emerging markets with inflation, if your currency is inflating daily, you want to find a more stable, less inflationary currency,” said a panelist. "The US dollar-backed stablecoin gives you that."

Circle's Cross-Chain Transfer Protocol (CCTP) exemplifies this evolution, handling approximately $41.0 billion in transfers since its April 2023 launch. First quarter 2025 transfers of $16.3 billion represented a 321% increase from the previous year (PDF).

Emerging Market Impact

The approximately 1.4 billion unbanked adults globally represent a significant opportunity for stablecoin-based financial inclusion. Startup banks and neo-banks in emerging markets increasingly focus on providing digital dollar payment and settlement services using USDC and broader stablecoin networks.

Major payment companies, including Visa, Mastercard, Stripe, Worldpay, and MoneyGram, are integrating stablecoin settlement capabilities. 

"Most of the payments innovation in recent years has been on the front end of the transactions, improving user interfaces, with a few on the backend, such as those related to fraud prevention, but stablecoins offer the possibility of significantly improving the backend of payments,” a report by PaymentsDive said.

"Large enterprise businesses will be the first to use stablecoins for payments, then small and mid-sized businesses will follow suit, with consumers likely to be the last leg of the adoption.”

The Path Forward for Digital Payments

The future of payments will likely feature multiple digital currency types serving different purposes: stablecoins for cross-border transfers and store of value functions, wholesale CBDCs for institutional settlement, and potentially retail CBDCs for domestic transactions. Success in this evolving landscape requires understanding how these technologies complement rather than compete.

Financial institutions, payment providers, and policymakers must prepare for a world where on-chain money becomes as ubiquitous as traditional electronic payments. Digital currencies will transform global finance, but it remains to be seen how quickly institutions can adapt to leverage their capabilities effectively.

To learn more, don't miss the next Digital Assets US conference. It's happening from October 20-21st, 2025 at the JW Marriott Miami.