A new report published by the International Bank for International Settlements – BIS), Bitcoin $103,267.87 And it reveals that other digital assets are more used in economic stress times. According to the report, especially in countries where high inflation is experienced, money transfers are expensive or the state’s bounded to the foreign exchange exit, the orientation to crypto money vehicles increases.
Crypto money orientation in economic challenges
In many countries, when financial systems lose their work or transfer costs increase, people tend to look for alternative financial solutions. At this point, users prefer fixed crypto currencies such as USDT and USDC, especially Bitcoin. Crypto assets offer rapid and more controllable financial instruments in international money transfers and periods of depreciation of the local currency.
The report points out that the use of crypto currencies increased during periods when states limited capital movements in order to control the money entry and exit of the states. Thus, individuals consider digital assets as a solution tool to overcome the restrictions imposed.
In the BIS report, “Direction to crypto currencies, usually stands out as a result of high inflation, increasing transfer costs and restrictions. People prefer digital currencies when financial systems are interrupted and needed.” statements.
A major increase in cross -border crypto transfers
The data obtained by BIS from 2017 to the middle of 2024 covers crypto exchanges and application usage. Cross -border crypto currency transfers are about $ 7 billion in the first quarter of 2017, while in the last quarter of 2021, it exceeded $ 800 billion. In 2022, with the decrease in the crypto markets, this figure decreased to 400 billion dollars, but in the second quarter of 2024, it rose to approximately 600 billion dollars.
In the first years, approximately 80 percent of these transfers constitute Bitcoin, recently said that the rate has fallen below 25 percent. Users are now turning to more fixed crypto money solutions, but this change shows that Bitcoin’s importance is not diminished, but that people prefer different tools for different needs.
Usage is shaped according to need
According to the BIS report, the use of crypto currencies is shaped according to needs rather than geography or local traditions. Individuals living in a region apply to digital currencies such as Bitcoin as an alternative when they cannot rely on traditional banking infrastructure and experience financial pressure.
The report also stated that the use of Bitcoin and other crypto assets increased as indicators such as VIX index with global financial stress increase. According to the study, this increase is not limited to individual users; Investors and companies are also turning to digital assets in uncertain times.
This study, published by BIS, is that the main purpose of crypto currencies is not only investment; It shows that it offers a practical financial solution, especially in times of crisis. People can reach the services they cannot access through traditional methods through crypto currency, so that they can maintain their financial freedom. The rapid increase in cross -border transfers and the rising share of fixed coins show that the crypto market continues to diversify user -oriented.
Responsibility Rejection: The information contained in this article does not contain investment advice. Investors should be aware that crypto currencies carry high volatility and thus risk and carry out their operations in line with their own research.
