Fragmented regulations limit stablecoin adoption in international finance: WTO head
Reported by Cointelegraph · AI-assisted summary by ChikoCorp AI News Desk
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Summary
Juan Marchetti, director of the trade in services and investment division at the World Trade Organization (WTO), stated that fragmented regulatory regimes are limiting stablecoin adoption in international trade. He highlighted that the main constraint is regulatory frameworks, not technology, citing a Financial Stability Board report showing only 39% of surveyed jurisdictions have finalized stablecoin regulations. Despite stablecoins' potential to improve trade finance friction points, they currently make up only 3% of international payments.
Why it matters
The WTO suggests stablecoins can address key issues in international payments such as high costs, low speed, limited access, and transparency problems. Emerging and developing economies stand to benefit most, especially through reduced remittance fees, but lack of regulatory development hinders adoption. The source implies that regulatory convergence and infrastructure development are critical for stablecoins to contribute significantly to trade.
Key context
The information comes from a WTO speech and study launch in Geneva, referencing a 2025 Financial Stability Board report. The WTO report identifies five main frictions in trade finance that stablecoins can potentially ease. It also notes a 35-fold growth in stablecoin use for cross-border payments between 2020 and mid-2024. Recent industry moves include Mastercard and Western Union partnerships to integrate stablecoins into payment systems.
Key numbers and entities
Juan Marchetti from the WTO, the Financial Stability Board report stating 39% (11 of 28 jurisdictions) have finalized stablecoin regulations, stablecoins constituting 3% of international payments, and a 35-fold increase in cross-border stablecoin payments from 2020 to mid-2024. Corporations mentioned include Mastercard, Western Union, Borderless, and Rain.
What remains unclear
The source does not specify which jurisdictions have finalized regulations or the detailed content of those regulatory frameworks. It also does not explain the exact mechanisms by which stablecoins reduce fees or other frictions. Further details on how the WTO plans to address regulatory fragmentation or support developing economies are not provided.