Speculation Drives Global Crypto Transfers, But Real-World Use Is Growing

Cryptocurrencies are now playing a dual role in the global economy—part speculative asset, part payment tool—according to a new analysis from the Bank for International Settlements (BIS).

The report highlights that nearly $600 billion in cross-border crypto transactions were recorded in Q2 2024, with most flows centered around Bitcoin, Ethereum, USDT, and USDC.

Despite growing narratives around crypto’s real-world utility, the BIS suggests speculative trading remains the primary driver of these massive volumes. Sharp movements in global funding conditions appear to influence crypto flows, underscoring the asset class’s increasing entanglement with traditional financial markets.

Still, utility use cases are emerging. In regions plagued by high inflation or steep remittance fees, stablecoins and small Bitcoin transfers are becoming practical alternatives to conventional banking systems.

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The report notes crypto is gaining traction particularly in emerging markets, where cross-border transfers are often costly or slow.

Geographically, the U.S. and U.K. dominated Bitcoin and USDC flows, while Turkey and Russia ranked among the top users of USDT. The BIS warns that as crypto adoption deepens, the risks tied to volatility, investor behavior, and unregulated flows could pose broader challenges to global financial stability.

Alexander Stefanov