Crypto Use Surges: Cross-Border Flows Hit $800B, Bitcoin's Share Drops
Cryptocurrency use has surged and evolved significantly over the past few years. Cross-border crypto flows have skyrocketed, with Bitcoin playing a crucial role, especially in countries facing economic hardship.
In 2017, cross-border crypto flows stood at a mere $7 billion. By the end of 2021, this figure had soared to over $800 billion, demonstrating a staggering 11,400% increase. However, the trend wasn't linear. In 2022, flows dipped to around $400 billion, before rebounding to approximately $600 billion by Q2 2024.
The Bank for International Settlements (BIS) reports that cryptocurrency use is driven by necessity rather than geographical location or language barriers. Countries with high inflation, expensive money transfers, or capital flow restrictions tend to see higher cryptocurrency usage. Bitcoin, once dominant, has seen its share in cross-border payments decrease from about 80% to below 25%. Stablecoins like USDT and USDC have gained popularity during this period.
The BIS's latest report underscores the role of cryptocurrencies as a financial lifeline, particularly in times of economic stress. Despite fluctuations, cross-border crypto flows remain substantial, indicating a growing acceptance and need for these digital assets.
