Stablecoins reshape the global trade landscape as multiple countries tacitly permit their use to evade sanctions.

Stablecoins are reshaping the global trade landscape, especially in sanctioned countries and regions seeking alternatives to the dollar-dominated financial system. From individual investors to businesses and even at the national level, the application of stablecoins is continually expanding, gradually becoming a strategic financial tool.

Russia's use of stablecoins in its oil trade with China marks this digital asset as an important financial infrastructure for high-risk cross-border commerce. The transaction process typically involves exchanging fiat currency for stablecoins, then transferring them to the counterparty, and finally exchanging them back to the domestic currency. This method circumvents Western financial intermediaries and reduces the risk of sanctions.

Despite strict restrictions on domestic cryptocurrency use in countries like China and India, they tacitly allow the use of stablecoins in trade with Russia, reflecting a pragmatic attitude. This practice not only maintains the supply chain of goods but also allows these countries to indirectly experience the efficiency of decentralized finance.

Apart from Russia, other sanctioned countries such as Iran and Venezuela have also turned to using stablecoins to maintain international trade. Even after sanctions are lifted, settlements based on stablecoins may continue, as their operational advantages are evident, such as faster transaction speeds and lower costs.

Countries around the world are responding to the rise of stablecoins in different ways. Countries and regions such as Thailand, Japan, Singapore, and Hong Kong are developing relevant regulatory frameworks, while countries like the United States and South Korea are also actively exploring. These developments indicate that stablecoins are becoming an important part of the global financial infrastructure.

The widespread adoption of stablecoins reflects a fundamental shift in financial infrastructure, rather than merely a means of regulatory evasion. They are becoming legitimate components of the modern financial system, rather than tools for illicit activities. Financial institutions and policymakers need to understand the nature of stablecoins and their long-term potential, and develop strategies that align with the evolving direction of the global financial system to remain competitive in the next wave of financial innovation.