Stablecoins are becoming more popular, yet they account for only 0.2% of global e-commerce transactions, primarily due to a lack of non-USD options, as highlighted in a report by Quinlan & Associates and IDA. Despite their benefits such as cost efficiency and fast processing, stablecoins are largely limited to the Web3 ecosystem due to regulatory uncertainty, which 81% of merchants cite as a major barrier to adoption. The report emphasizes the growing need for non-USD stablecoins, especially since around 83% of countries do not use the USD officially, and approximately 40% of international payments occur in other currencies. Currently, stablecoins represent a total market capitalization of $200 billion, mainly comprised of USD-pegged stablecoins like Tether and USD Coin. To address this gap, IDA plans to launch a stablecoin pegged to the Hong Kong Dollar to facilitate payments between Hong Kong and global markets. Additionally, forthcoming regulations are expected to address concerns surrounding stablecoin issuers, including reserve requirements and regulatory jurisdiction, with possible legislative advancements starting in 2025.

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