Tariff Volatility: Leveraging the Potential of Stablecoins to Optimize Cross-Border Payments

Recent trade tensions and increased tariffs on imported goods are raising operational costs for companies with global supply chains. In 2024, tariffs imposed on key products such as steel and semiconductors are estimated to have increased import costs by 15% in markets like Mexico and Brazil, directly impacting businesses that rely on foreign inputs.

Beyond the direct impact on the price of imported goods, tariffs generate volatility in local currencies and increase the cost of currency conversion for international operations. Over the past two years, the Argentine peso and the Brazilian real have experienced fluctuations of up to 20% against the U.S. dollar, complicating financial planning for companies operating in these markets.

The most affected sectors include manufacturing, logistics, and e-commerce, where reliance on imports and exports means that each additional percentage point in costs can reduce profit margins and global competitiveness. For example, retail companies that depend on importing electronic products have had to adjust their pricing strategies or seek more efficient payment alternatives to keep costs under control.

Using Stablecoins to Optimize Operating Costs

Traditional cross-border payments often involve multiple financial intermediaries, increasing processing costs and causing delays in settlements. Integrating stablecoins into a company’s payment structure helps reduce these frictions by:

Enabling real-time direct payments: Stablecoins allow instant transactions without relying on banking hours or prolonged clearing processes.
Reducing intermediaries and costs: By minimizing dependence on correspondent banks, stablecoins eliminate additional costs in international payments.

Providing greater flexibility in supplier payments and global payroll: Businesses can efficiently manage their payment obligations across different markets without worrying about local currency availability.

Use Cases for Money Transmitters and International Payments

For institutions facilitating international payments, such as Money Transmitters, stablecoins present an opportunity to enhance user experience and expand their reach in emerging markets. Key applications include:

• International payments without the need for pre-funding: Companies like Bitso Business have enabled global suppliers to quickly convert between local currencies and digital dollars, reducing costs by 8% compared to traditional bank transfers.
• Regulatory compliance and tax optimization: The transparency and traceability of stablecoins simplify compliance with international regulations and reduce administrative costs related to audits and regulatory reporting. In Brazil, the adoption of stablecoins has allowed companies to meet cross-border payment regulations without requiring multiple intermediary banks.
• Expansion into new markets: International trade companies have started using stablecoins to process payments in countries with limited banking infrastructure, avoiding delays of up to five business days in traditional settlements. In Mexico, some fintech companies have implemented these payments to facilitate transactions with clients in Asian markets.

Stablecoins are redefining how companies manage cross-border payments in an increasingly complex trade environment. Amid the uncertainty caused by tariffs and currency volatility, adopting these digital assets enables businesses to optimize costs, improve operational efficiency, and facilitate expansion into new markets.

For companies that rely on international transactions, integrating more agile and predictable payment solutions not only mitigates financial risks but also provides a competitive advantage in a constantly evolving global trade environment. Businesses that have implemented stablecoins have managed to reduce transaction costs by up to 10% and enhance the predictability of their cash flows, positioning themselves as more resilient players in the new global economy.