A new report from the Bank for International Settlements (BIS) shows that Bitcoin and other cryptocurrencies are being used more during times of economic stress. This happens mostly in countries where inflation is high, it’s expensive to send money, or the government limits how much money can leave the country.
People turn to Bitcoin and stablecoins like USDT and USDC when their financial systems stop working properly or become too expensive to use. This is especially true for small international payments. Crypto gives people another option when they can’t rely on banks or traditional money systems.
Bitcoin Becomes a Tool During Hard Times
The report supports what many people in the crypto space already believe—Bitcoin isn’t just for investing anymore — in some places, it’s a real lifeline. When the value of local money drops fast or when it’s hard or too costly to send money across borders, people turn to Bitcoin to keep their money safe and to send it faster, cheaper, and with more control.
The BIS also found that when countries try to control how money moves in or out (through capital flow management), crypto use often goes up. In other words, people use Bitcoin and other crypto to get around those rules.
Cross-Border Crypto Payments Are Growing
Using data from crypto exchanges and app usage patterns, the BIS mapped cross-border transactions of Bitcoin, Ethereum, USDT, and USDC from 2017 to mid-2024. Cross-border crypto flows skyrocketed from under $7 billion in Q1 2017 to over $800 billion in Q4 2021, before falling to around $400 billion in 2022 during a crypto market slump. However, they rebounded to approximately $600 billion by Q2 2024.
At first, Bitcoin made up about 80% of those payments. Now that number is below 25%, with more people turning to stablecoins. This shift doesn’t mean Bitcoin is less useful—it just shows that people are choosing different tools for different needs.
Crypto Use Is About Need, Not Where You Live
Unlike regular banks, Bitcoin use doesn’t depend much on where you live or what language you speak. The report says people use it when they need to, not just because it’s popular. Also, when global financial stress goes up—measured by things like the VIX (a market fear index)—Bitcoin use also goes up. This shows that even investors and businesses use crypto more during uncertain times.
