BIS Study Analyzes Cross-Border Cryptocurrency Flows

According to PANews, the Bank for International Settlements (BIS) recently released a paper titled "An Empirical Analysis of Cross-Border Bitcoin, Ethereum, and Stablecoin Flows," examining the driving factors behind cross-border cryptocurrency flows in 184 countries from 2017 to mid-2024. The study reveals that geographical distance and language barriers have a lesser impact on cryptocurrency transactions compared to traditional financial flows. Global factors such as increased market volatility and widening credit spreads are significant determinants of native crypto assets. Stablecoins show a stronger correlation with remittance costs and transaction demand, particularly in emerging markets and developing economies where traditional financial channels are expensive. Additionally, capital flow management measures appear largely ineffective in curbing these digital transactions, with evidence suggesting that the trading volume of certain crypto assets has even increased following the implementation of such measures. The findings highlight the dual role of crypto assets as speculative investments and trading tools, underscoring the need for further research to assess their impact on financial inclusion and economic stability.