Stablecoins and Their Role in the Future of Money
06.07.2025By Miloš Stevanović, Attorney and Investor
www.standardprva.ba
Stablecoins have become a central topic in modern finance, bridging the world of cryptocurrencies with traditional money. These are digital tokens designed to maintain a stable value pegged to a specific currency (most often the US dollar) or other assets. Unlike volatile cryptocurrencies like Bitcoin, a stablecoin has a relatively fixed price—e.g., 1 stablecoin = 1 USD—which provides protection from sudden fluctuations. This innovation enables companies and individuals to enjoy the benefits of blockchain technology (speed, global reach) without the risks of extreme volatility. Stablecoins are therefore an important bridge between the traditional financial system and new digital markets.
What are stablecoins?
A stablecoin is a type of crypto-asset whose value is pegged 1:1 to the value of stable assets, most commonly fiat currencies such as the US dollar or the euro. The issuer of a stablecoin usually maintains reserves in that currency or in highly liquid assets so that each issued token is always backed by real value.
There are several models of stablecoins: fiat-collateralized (e.g., Tether USDT, Circle USDC—each token backed by a dollar in reserve), crypto-collateralized (backed by other cryptocurrencies, often over-collateralized due to volatility), and algorithmic (relying on algorithms and smart contracts instead of reserves). In practice, fiat-collateralized stablecoins dominate the market because of their simplicity and the trust in their reserve assets.
For example, the largest stablecoins today are Tether (USDT) and USD Coin (USDC), both pegged to the USD. There is also Dai (DAI)—a decentralized stablecoin on Ethereum that maintains a 1 USD value through over-collateralized crypto reserves.
The key feature of all of them is price stability: one USDT or USDC is worth approximately one dollar at any given moment.
Such stability makes stablecoins useful financial tools. They serve as a “safe haven” in the crypto ecosystem—investors and traders can quickly convert volatile cryptocurrencies into stablecoins to preserve value during market turbulence. Stablecoins also enable rapid transfers of value on the blockchain without needing to withdraw funds into banks. For example, a trader can sell a crypto asset and receive USDC (instead of fiat dollars), and then immediately use that USDC to trade another asset or send it to anyone in the world. This ability to “park” capital in a stable digital form has made stablecoins an indispensable part of the crypto market.
Why are stablecoins important?
Stablecoins are important because they combine the best of both worlds—the stability of traditional money with the innovation of blockchain. Here are the key reasons why they are playing an increasingly important role in the future of money:
Value Stability: Unlike Bitcoin and similar crypto tokens, a stablecoin is pegged to a stable value (such as USD or EUR), making it suitable for everyday payments and storing value. Users in countries with high inflation particularly appreciate the ability to hold value in dollars or euros via stablecoins, without the need for a foreign currency bank account.
Fast and Low-Cost Payments: Stablecoins significantly speed up and reduce the cost of transactions, especially international ones. Money transfers via stablecoins can be completed in just seconds or minutes, compared to several days with traditional bank transfers. The costs are drastically lower—sending stablecoins on efficient networks often costs less than $1 (or even just a few cents), whereas an international SWIFT transfer can cost $30–$100 per transaction. For example, sending $200 from the U.S. to Colombia via stablecoin can cost less than 1 cent, while traditional methods cost around $12. These savings on fees directly improve the margins of businesses where payment costs are significant (e.g., low-margin retail companies).
Global Availability (24/7): Stablecoin transactions occur online without the involvement of banks, meaning they can happen nonstop, every day of the year, anywhere in the world. There are no bank hours or public holiday limitations—a company can send funds to a foreign business partner at midnight on a Friday, and the transaction will be completed within minutes. Moreover, there are no intermediary banks (no correspondent banking chains), which eliminates complex links like “sending bank – intermediaries – receiving bank” and reduces the risk of errors or blocked transfers. For exporting or importing firms, this means more reliable cash flow and better liquidity management.
Widespread Acceptance in the Crypto Ecosystem: Stablecoins have become the de facto unit of account on crypto exchanges and in decentralized finance (DeFi). Many DeFi platforms use stablecoin pairs for lending, interest, or trading, as they eliminate volatility risk. This opens the door to innovation—from smart contracts enabling automated payments, to new financial products based on the stable value of tokens. Stablecoins are currently the only globally distributed payment rail (alongside cash and gold) that operates without traditional intermediaries such as banks or card networks. At the same time, because they run on open blockchain networks, they are programmable and integrable—startups and fintech companies can incorporate them into their platforms to add functionality (micro-payments, instant settlement, complex conditional transactions, etc.).
Security and Transparency: Stablecoin transactions are recorded on the blockchain, providing a high level of transparency—every transaction can be tracked via public blockchain explorers in real time. This can simplify audits and accounting in certain cases, as the money trail is public and immutable. In addition, reputable stablecoin issuers (such as Circle, the issuer of USDC) regularly publish reserve reports and undergo audits by independent firms, which builds confidence that the tokens are truly backed by appropriate reserves. Of course, this benefit only applies if the issuer operates transparently and in compliance with regulations.
In short, stablecoins promise a more efficient, accessible, and inclusive payment system. Many see them as the foundation of future global finance—platforms like PayPal already launched their own dollar-pegged stablecoin (PYUSD) in 2023, making it the first major fintech company to enter the field of issuing its own digital currency. Even the U.S. Congress welcomed this move, emphasizing that stablecoins “promise to become a pillar of the modern payment system.” All of this indicates that stablecoins are not just a crypto novelty, but a potential backbone of the emerging digital economy.
Political and Regulatory Acceptance of Stablecoins
Although stablecoins originally emerged outside the traditional financial system, they are now attracting significant attention from politicians and regulators—especially in the U.S. and the EU. The evolving regulatory framework will determine how stablecoins are integrated into the formal monetary system in the coming years.
United States:
In the U.S., work is currently underway to introduce dedicated legislation for stablecoins. So far, American issuers (such as Circle, the issuer of USDC) have operated within existing legal frameworks—e.g., by registering as financial institutions at both the federal and state levels. Circle is registered as a money services business with FinCEN and holds money transmitter licenses in 46 states, which has allowed USDC to operate legally in most of the U.S. However, a comprehensive federal law to uniformly regulate stablecoins nationwide has yet to be passed. Two legislative proposals are under consideration in 2024–2025: the GENIUS Act (in the Senate) and the STABLE Act (in the House of Representatives), both aimed at establishing licensing and oversight of so-called “payment stablecoin” issuers.
These bills define a payment stablecoin as a digital asset pegged to fiat currency, with an issuer legally obligated to redeem it at face value. They clearly specify that a payment stablecoin is not a security or commodity (thus falling outside the SEC’s jurisdiction). The proposed framework requires that only authorized issuers may issue such stablecoins, under strict conditions: 100% reserves in safe assets, regular reporting with independent audits, AML/KYC compliance, and clear user rights to redemption. The framework also envisions a coordinated system of federal and state supervision—e.g., issuers with assets over $10 billion would be under federal oversight, while smaller ones would be regulated at the state level (provided the state has an equivalent regime).
These initiatives have bipartisan support—from both Republicans and Democrats—which signals political will to integrate stablecoins into the financial system in a safe and regulated way. Even the executive branch has highlighted stablecoins as a top priority: in 2025, they are considered a key focus of financial reform, and daily use of stablecoins by traditional institutions is expected to grow significantly within the next year or two. In short, U.S. policy is moving toward formally recognizing and regulating stablecoins as payment instruments. This approach aims to foster innovation and maintain America’s competitiveness in the global race—especially as the EU, UK, Hong Kong, and others introduce their own frameworks for fiat-backed stablecoins.
European Union:
The EU has taken a different path—moving swiftly to adopt a comprehensive regulatory regime. In June 2023, the Markets in Crypto-Assets Regulation (MiCA) came into force, becoming the first pan-European law to cover stablecoins. MiCA defines two categories for stablecoins: asset-referenced tokens (ARTs) and e-money tokens (EMTs), which together include all fiat-backed stablecoins. Key rules include a 1:1 reserve requirement for all fiat-linked tokens—each token must be backed by an equivalent in fiat or highly liquid assets—to preserve monetary sovereignty and prevent financial instability.
MiCA bans algorithmic stablecoins altogether, due to the risks they pose. The collapse of TerraUSD in 2022 and the $40 billion in lost investments served as a wake-up call. Additionally, every stablecoin issuer in the EU must obtain authorization from relevant authorities and meet strict requirements regarding capital, governance, and reporting. Special attention is given to “significant” stablecoins whose scale could present systemic risk—these will face even stricter rules and transaction limits (e.g., monthly volume caps).
The European approach is driven by concerns over financial stability and the prevention of “digital dollarization” of the EU economy. European regulators want to avoid a scenario in which unregulated dollar-denominated stablecoins flood the EU market and undermine control over the financial system. For this reason, MiCA prohibits domestic financial institutions from offering unlicensed foreign stablecoins (e.g., USD tokens issued outside the EU) to EU residents. The European Central Bank (ECB) has stated that it will closely monitor the risk of “digital dollarization,” while national regulators and the European Banking Authority (EBA) have the power to suspend the issuance of foreign stablecoins denominated in non-euro currencies if deemed risky.
In practice, the effects of MiCA are already being felt: by the end of March 2025, many crypto exchanges in the EU (such as Kraken, Crypto.com, and even the largest U.S. exchange, Coinbase) are delisting stablecoins that do not comply with the new requirements—including the popular Tether (USDT) and even PayPal’s PYUSD—because their issuers are not (yet) licensed in the EU. Some issuers are withdrawing tokens from the EU market or seeking alternative solutions (e.g., Tether shut down its euro-stablecoin EURT and invested in an EU-based company with a stablecoin license).
All of this shows that the EU is cautiously embracing stablecoins—recognizing their utility but insisting on strict oversight to protect the financial system and the euro. Simultaneously, the EU is developing its own central bank digital currency (CBDC)—the digital euro—as a public alternative to private stablecoins in domestic payment flows.
Comparative Outlook: A Global Balancing Act Between Innovation and Risk
Globally, the political approach to stablecoins is a balancing act between fostering innovation and mitigating risk. While the U.S. administration and Congress view stablecoins as an opportunity to strengthen the international role of the dollar through technological innovation (a so-called “crypto-mercantilist” strategy—promoting global use of USD-backed stablecoins collateralized by U.S. Treasuries, thereby indirectly increasing demand for the dollar and U.S. debt), Europe seeks to limit the dominance of foreign currencies in its digital space and prevent systemic risks before they materialize.
In both cases, the very fact that specific legal frameworks are being drafted reflects institutional recognition of the importance of stablecoins. Regulation will be key: well-designed rules can enable broader adoption of stablecoins (e.g., by banks, payment systems, and enterprises), while overly restrictive measures could stifle innovation. For now, the trend is moving toward integrating stablecoins into the official financial system with clearly defined rules of the game.
Business Advantages of Stablecoins
From a business perspective, stablecoins offer a range of tangible benefits for day-to-day operational and financial functions. They are particularly attractive for companies with international operations, tech startups in the fintech sector, and finance teams seeking greater efficiency in payments. Key advantages include:
Faster International Transfers: As previously mentioned, sending and receiving payments via stablecoins is nearly instantaneous, without waiting for bank clearing. Instant settlement improves cash flow—e.g., an exporter can deliver goods and receive stablecoin payment from a foreign buyer on the same day, instead of waiting a week for a bank transfer.
Lower Transaction Costs: Stablecoin transactions on efficient blockchain networks incur minimal fees. These costs are typically much lower than those charged by card networks or banks. Companies that accept stablecoin payments can save on intermediary fees—for example, e-commerce merchants can avoid the high transaction fees charged by credit card processors (typically 2–3%), directly boosting profit margins. Studies show that stablecoins are already the cheapest way to send a digital dollar across the globe.
Global Reach and Access to New Markets: By accepting stablecoins, companies—especially online retailers and service providers—can serve global customers more easily. Anyone with internet access can pay with stablecoins, even if they don’t have access to international credit cards or PayPal due to local restrictions. This opens doors to new customers in countries where traditional payment services are unreliable. Stablecoins remove entry barriers to foreign markets, as they are denominated in globally accepted currencies (USD, EUR) and do not require local banking infrastructure.
More Efficient Liquidity Management: CFOs can use stablecoins to optimize cash flow between subsidiaries and across markets. Instead of holding excess funds in foreign bank accounts—where transfers may be delayed by capital controls—a company can quickly move funds via stablecoins, 24/7, to where they are needed. This is particularly useful in countries with strict foreign exchange controls—stablecoins can offer a legal and less obstructed way to transfer funds, though compliance with local regulations remains essential.
Reduced Currency Risk: Exporters and importers frequently face the risk of exchange rate fluctuations. By using stablecoins pegged to a specific currency, a business can invoice and settle in the same value (e.g., in USD stablecoins), avoiding FX volatility over the course of the transaction. This effectively hedges currency risk in a simple way—the stablecoin transaction starts and ends in the same currency value, while conversion to local currency can be timed according to the company’s financial strategy.
No Chargebacks or Reversals: Unlike credit cards, blockchain-based stablecoin payments are irreversible once confirmed. This prevents issues with fraudulent “chargeback” requests that can affect online merchants. Of course, customers need to be careful when authorizing payments, but for merchants, this reduces the risk of lost goods or services due to payment disputes.
Innovative Financial Services: Fintech startups can build new services around stablecoins—from remittance apps allowing migrants to send money home at minimal cost, to lending platforms where stablecoins serve as collateral or a disbursement method. The programmability of stablecoins (via smart contracts) enables automation of complex payments—for example, smart contracts could automatically distribute stablecoin payments to suppliers once certain conditions are met (e.g., delivery of goods, approval by an inspector). This increases efficiency in B2B supply chains.
To fully capitalize on these advantages, companies must first develop internal capabilities to handle digital wallets, securely store private keys, and comply with regulatory requirements (e.g., accounting treatment of stablecoins, which we’ll address later). Nevertheless, many business leaders are recognizing the potential: reports suggest that 2025 could be “the year of stablecoins”, with more and more enterprises expected to accept them as a means of payment or settlement. Major players are already entering the space—alongside PayPal, companies like Visa (which enables stablecoin settlements for interbank obligations), Stripe (which acquired a stablecoin payment platform), and other financial institutions are testing stablecoin integration into their systems. All of this confirms that stablecoins offer undeniable business value.
Challenges and Risks of Stablecoins
Despite the numerous benefits, stablecoins come with certain risks and challenges that both companies and regulators must consider:
Regulatory Uncertainty: Stablecoin regulations are still evolving and vary across jurisdictions. In some countries, stablecoins lack clear legal status—are they electronic money, commodities, or something else? Legal changes can affect business models overnight. (Example: the EU's MiCA regulation effectively excludes unapproved stablecoins from the market, requiring companies that relied on them to adapt quickly.) It’s a challenge for companies to remain compliant in multiple countries and to stay on top of new licensing, reporting, and taxation requirements related to stablecoin transactions.
Trust and Reserve Risk: A stablecoin’s price stability relies on the reserves backing it. If the issuer lacks 100% backing or is not transparent, there’s a risk of losing user confidence and “depegging.” The most infamous case was the collapse of the algorithmic stablecoin TerraUSD in 2022, which lost its peg and wiped out tens of billions in value within days. While fiat-collateralized tokens appear safer, they too are vulnerable to panic if users doubt the reserves. Tether (USDT), for instance—the largest stablecoin—has faced ongoing scrutiny over the transparency of its reserves. Regulatory oversight and regular audits are therefore critical. Companies should prefer stablecoins issued by organizations that publish regular reserve reports and hold funds in secure, liquid investments (e.g., U.S. Treasury bills).
Operational and Technological Risks: Using blockchain involves the typical risks of digital systems—cybersecurity is paramount. Losing private keys or having a wallet hacked can result in irretrievable loss of funds. Companies must invest in protection (e.g., hardware security modules, multi-factor authentication, staff training) to safely manage stablecoin holdings. Furthermore, dependence on a specific blockchain means exposure to its capacity and cost limitations—e.g., the Ethereum network may become expensive or congested during peak periods, slowing down transactions. There’s also the risk of technical bugs or failures in smart contracts, especially when automating payments, which necessitates caution and thorough testing.
Financial and Systemic Risk: On a macroeconomic level, widespread stablecoin use raises questions for monetary authorities. Central banks worry that privately issued digital currencies might undermine traditional money—e.g., during a crisis, would people massively convert bank deposits into stablecoins, destabilizing the banking system? Moreover, a USD-backed stablecoin widely used in another country could result in “dollarization” of that economy, making it harder for the local central bank to implement monetary policy. It’s not surprising that some central banks criticize stablecoins—some even call them “unstable coins”—arguing they cannot replace traditional money without serious systemic consequences. Companies using stablecoins at scale must monitor such macroeconomic implications and be prepared for potential regulatory restrictions in crisis scenarios.
Tax and Accounting Considerations: The treatment of stablecoins in financial reporting remains relatively new and unsettled. In some jurisdictions, stablecoins are not recognized as official currency and may be classified as financial or intangible assets, depending on the context. For instance, accountants must determine whether holding stablecoins qualifies as a cash equivalent (which makes sense, since they’re pegged to fiat) or as a separate asset class. Stablecoin transactions may also trigger tax obligations—in the U.S., stablecoins are considered property for capital gains tax purposes, and IRS Form 1099-DA was introduced to report such transactions. Accountants and auditors must follow emerging standards to ensure accurate reporting and compliance. This uncertainty requires caution: firms should maintain detailed records of all stablecoin activity (timestamps and values) for potential tax liabilities and internal controls.
Despite these risks, most experts agree that these challenges are solvable with the right regulatory frameworks and internal risk management. Just as early concerns about online payments were overcome with maturing technology and standards, the stablecoin ecosystem is expected to evolve—with improved regulations, audit practices, and cybersecurity solutions. Companies that proactively address these risks (e.g., by establishing clear procedures for digital asset handling, involving legal and financial advisors, and tracking regulatory guidance) will be well-positioned to reap the benefits of stablecoins while keeping risks in check
Stablecoins in the Next 3–5 Years: A Forward-Looking Perspective
What developments can we expect in the stablecoin space in the near future? Judging by current trends, the coming years will bring significant expansion in the use of stablecoins, alongside the establishment of clear regulatory frameworks and the emergence of new players in the digital money market.
1. Regulatory Clarity Will Likely Be Achieved
By 2025–2026, legislation on stablecoins in the U.S. is expected to be adopted, bringing them fully into the mainstream financial system under official regulatory oversight. This could fundamentally reshape the payment infrastructure: banks, payment companies, and corporations will receive the green light to issue their own stablecoins or adopt them widely for payments. Traditional financial institutions, previously cautious due to legal uncertainty, are expected to enter the space. Some major banks are already experimenting (e.g., JPMorgan’s internal use of JPM Coin for settlements), and with clear laws, we might see bank-issued stablecoins available to retail clients.
At the same time, the EU’s MiCA regulation will be fully implemented by the end of 2024, meaning that by 2025 only compliant stablecoins will remain active in the EU market. Ironically, this could increase trust and open the door for institutional usage. For example, European banks may more easily adopt euro-denominated stablecoins under MiCA, as they are treated similarly to licensed e-money.
2. Rapid Adoption in the Business Sector
It’s no longer a question of if companies will use stablecoins, but when and how. Deloitte predicts stablecoins will become a cornerstone of digital payments, enabling greater efficiency and innovation across industries. As of now, the total market cap of stablecoins exceeds $200 billion and continues to grow. An increasing number of businesses are accepting stablecoins for payments.
In the next 3–5 years, we can expect mainstream retailers to begin accepting stablecoins—either directly or via intermediaries who convert them into fiat—especially in e-commerce and hospitality, where tight margins make savings on fees highly attractive. As demand rises, new payment platforms tailored to businesses will likely emerge, easing integration in the same way that payment gateways simplified online card transactions.
Remittances are already seeing success through stablecoins, and this trend will continue—migrants and global workersincreasingly use stablecoins to send earnings home, with far lower costs than traditional methods.
3. Diversification of Stablecoin-Based Products and Services
We can expect to see a broader range of financial products built on stablecoins—such as loans, insurance, and other instruments where payouts are made in stablecoins. New concepts are emerging under the umbrella of “Stablecoin 2.0,” including tokenized deposits or stablecoins that pay interest (since their reserves generate yield through instruments like U.S. Treasuries).
Stablecoin issuers like Circle already earn interest on reserve assets, allowing them to sustain their models—and in the future, some of this yield may be shared with users, making stablecoins more attractive than idle fiat holdings. Additionally, we’ll see greater interoperability between traditional finance and stablecoin networks. Visa, for instance, is experimenting with stablecoin settlement, enabling merchants to receive fiat even if a customer pays in stablecoin (and vice versa), with everything handled behind the scenes.
The boundary between CBDCs (Central Bank Digital Currencies) and private stablecoins could blur. Some analysts believe they will coexist: CBDCs for domestic retail use under central bank control, and commercial stablecoinsproviding additional features and supporting international transactions. Over the next five years, we’re likely to see pilot versions of the digital euro and potentially a digital pound, though the U.S. digital dollar remains uncertain. If CBDCs emerge, stablecoin issuers will need to reposition—whether through 1:1 convertibility with CBDCs or by focusing on other currencies and services.
4. Integration with Traditional Banks
Rather than being displaced by stablecoins, banks are likely to adapt. They may introduce tokenized deposit stablecoins or offer custody and management services for clients' digital assets. With proper regulation, stablecoins could become a new form of deposit or liability on bank balance sheets (with the appropriate guarantees). This evolution could enable faster, cheaper interbank transfers, benefitting both businesses and consumers.
Banks that adapt will have the opportunity to combine their trusted brand with stablecoin technology to offer reliable solutions. Meanwhile, non-bank payment providers (FinTechs) will try to leverage their agility to capture market share through innovative stablecoin services—driving healthy competition that leads to better services and lower costs for users.
5. A More Mature and Resilient Stablecoin Ecosystem
With supervision, clear rules, and participation from reputable institutions, public trust in stablecoins is expected to grow. We’ll see the establishment of standards for reserve transparency and emergency protocols (e.g., for redemption if a mass fiat conversion occurs).
Stablecoins may eventually become an invisible layer of financial infrastructure—users won’t even realize they’re interacting with a stablecoin behind the scenes, just as most people don’t think about payment networks when using a mobile app to send money. All they’ll see is a fast, low-cost, seamless service.
Conclusion and Recommendation
For many companies — whether exporters, e-commerce businesses, fintech startups, or accounting firms — now is the right time to carefully consider their strategy regarding stablecoins. This does not mean implementing them immediately and unconditionally, but rather analytically assessing where stablecoins can add measurable value to their business.
For example, exporters can test receiving part of their payments in stable digital dollars to accelerate cash inflows and reduce banking costs; online merchants can offer stablecoins as a payment option for foreign customers who lack access to traditional methods, thereby expanding their market and saving on fees. Fintech companies should seize the opportunity for innovation — integrating stablecoins can give them a competitive edge in developing new services such as instant global transfers or multi-currency digital wallets, while ensuring full compliance with future regulatory requirements.
Accountants and financial advisors play an important role in educating and assisting clients on proper recording and compliance of stablecoin transactions, as well as recognizing the tax implications of their use.
The key to success is moderation and being well-informed. Stablecoins offer significant benefits but require a strategic and controlled adoption. It is recommended to start with pilot projects, monitor regulatory changes, and consult experts before making major moves. Those who acquire knowledge and experience now will gain a significant competitive advantage when stablecoins become a standard part of the financial landscape.
If you want to explore how stablecoins can improve your business or receive professional advice, we are available for consultations — timely preparation today means an advantage tomorrow.
Sources
The information in this text is based on the latest available data and analyses, including legal guides, reports from reputable consulting firms, and current market trends. Given the dynamic regulatory environment, it is advisable to regularly monitor developments and consult with experts.
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