Stablecoins function as digital assets that link to traditional currencies like the U.S. dollar, offering a cost-effective way to send money across borders. Unlike traditional bank transfers, stablecoins bypass costly intermediaries. Research from George Mason University shows that people sending money to low- and middle-income countries (LMICs) often lose 5-10% to fees, while stablecoins reduce this to just 1-2%. For example, sending $1,000 overseas with stablecoins can save up to $80, ensuring more of your money reaches its destination.

USDT (Tether), a widely adopted stablecoin, demonstrates the power of digital currencies in reducing remittance costs. Paired with blockchain networks like Corechain, USDT-based transfers cost a fraction of traditional methods, with near-instant transaction speeds, something traditional banking struggles to achieve. Stablecoins have become a strong alternative for international transactions thanks to their reliability, speed, and security.

Transparency and Security Through Blockchain

Stablecoins use blockchain technology, meaning the system records every transaction transparently and securely. Unlike traditional banking, which often involves hidden fees and unpredictable exchange rates, stablecoin transactions are clear and predictable. This transparency is particularly helpful in regions where trust in financial institutions is low. With stablecoins, users know exactly where their money is and how much will arrive.

According to Kulkarni et al. (2019), over 1.4 billion people globally are unbanked, although many have mobile phones. Stablecoins provide a way for these individuals to join the digital financial system, bypassing unreliable middlemen.

How Element Wallet Makes International Transactions Easier

•  Direct Purchases: Element Wallet’s new on-ramp feature allows users to buy stablecoins like USDT and tokens on the Corechain network directly in the app with a credit card, removing the need for external exchanges and simplifying the process for newcomers.
•  Private, Peer-to-Peer Payments: The wallet’s peer-to-peer (P2P) payment feature lets users send money directly through private chats. This is ideal for sending money regularly to friends and family abroad. The transparency of stablecoins helps ensure that both senders and recipients know exactly what will be received, unlike traditional methods, which can have hidden fees.
•  Non-Custodial Control: Element Wallet is non-custodial, meaning users have full control over their funds. This eliminates intermediaries and third-party custody fees, creating a smoother and safer transaction experience, since you are the only one who has access to your assets.

Using stablecoins with Element offers a seamless and transparent way to make international transactions and payments. This model addresses common issues like hidden fees and complex banking processes, positioning stablecoins as a key part of a more inclusive global financial landscape.

Stablecoins have the potential to transform the remittance market by reducing fees, improving transparency, and speeding up transactions, all crucial for the millions of people relying on cross-border payments.

Disclaimer: The information provided is for general informational purposes only and should not be considered financial advice. Always do your own research before making any investment decisions.