Decrypting Crypto: How to Estimate International Stablecoin Flows (IMF)

The IMF published the results of a study that leveraged a combination of AI and machine learning to estimate the geographic distribution of international stablecoin flows. Analyzing $2 trillion in stablecoin transactions during 2024, it finds that stablecoin flows are highest in absolute terms in North America ($633 billion) and Asia-Pacific ($519 billion). However, the most significant flows relative to GDP were in Latin America/Caribbean (7.7%) and Africa/Middle East (6.7%). Additionally, intraregional flows in these two regions are notably lower, accounting for 14% and 12% of total flows originating from the region, compared to, for example, 34% in North America. This suggests that stablecoin use in Africa and Latin America is predominantly international, possibly driven by use cases such as remittances. The study also establishes a correlation between net stablecoin inflows into regions and the relative weakness of domestic currencies against the U.S. dollar, either suggesting that stablecoins serve as a mechanism to fulfill global demand for dollar-based assets for people that seek a hedge against currency depreciation, or that stablecoin flows could possibly be sizable enough to drive exchange rate dynamics. [Read more at the IMF]

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