Stablecoins in Emerging Markets: Revolutionizing Payroll and Financial Inclusion – OneSafe

Report on Stablecoin Adoption in Emerging Markets and its Alignment with Sustainable Development Goals

Introduction: A Tool for Global Financial Inclusion

This report examines the increasing adoption of stablecoins in emerging markets as a critical mechanism for advancing global financial inclusion. The analysis focuses on how this trend aligns with and contributes to the achievement of several United Nations Sustainable Development Goals (SDGs), particularly those concerning poverty reduction, economic growth, and reduced inequalities. Stablecoins are emerging as a practical solution for cross-border transactions and financial access in regions underserved by traditional banking infrastructure.

Analysis of Stablecoin Adoption and its Impact on SDGs

Driving Financial Inclusion and Reducing Inequalities (SDG 1, SDG 10)

The primary driver for stablecoin adoption in emerging economies is the necessity for accessible and stable financial services. This directly supports SDG 1 (No Poverty) by providing tools for wealth preservation and SDG 10 (Reduced Inequalities) by granting access to the global economy for unbanked and underbanked populations.

• Access for the Unbanked: In regions with inadequate banking infrastructure, stablecoins offer a direct gateway to financial services, enabling individuals to save, transact, and participate in economic activities.
• Efficient Remittances: For nations reliant on remittances, such as the Philippines, India, and Pakistan, stablecoins provide a more efficient and lower-cost alternative to traditional transfer services. This directly addresses SDG Target 10.c, which aims to reduce remittance transaction costs.
• Practical Application: Data from Q3 2025 indicates that stablecoins like USDt and USDC constituted nearly 40% of total crypto volume, with average transfers between $100 and $500, highlighting their use for essential, day-to-day financial needs rather than speculative investment.

Fostering Economic Growth and Resilient Infrastructure (SDG 8, SDG 9)

The integration of stablecoins into local economies promotes sustainable economic development by creating new pathways for commerce and work, aligning with SDG 8 (Decent Work and Economic Growth) and SDG 9 (Industry, Innovation, and Infrastructure).

1. Enabling Global Payroll: Stablecoins facilitate seamless international payroll systems, allowing individuals in emerging markets to access employment opportunities with global companies.
2. Supporting Economic Participation: By providing a stable medium of exchange, these digital assets empower individuals and small businesses to engage in international trade and the digital economy.
3. Building Innovative Financial Infrastructure: The adoption of stablecoins relies on blockchain technology, a form of innovative and resilient infrastructure (SDG 9) that can operate independently of traditional financial systems, offering a robust alternative in times of local economic instability.

Strategic Imperatives for Sustainable and Inclusive Growth

The Role of Education and Institutional Trust (SDG 4, SDG 16)

For the benefits of stablecoins to be realized sustainably, user trust and knowledge are paramount. This requires a concerted effort towards education and transparency, which supports SDG 4 (Quality Education) and SDG 16 (Peace, Justice, and Strong Institutions).

• Financial Literacy: Initiatives to educate users on the effective and safe use of digital wallets and the mechanics of stablecoins are crucial for long-term adoption and consumer protection.
• Transparency and Trust: The inherent transparency of public blockchains allows users to verify transactions, fostering trust in financial systems, a key component of building strong and accountable institutions under SDG 16.

Partnerships for Secure and Accessible Technology (SDG 17)

The challenge of balancing user-friendly design with robust security is being addressed by fintech companies. This effort represents a form of multi-stakeholder partnership essential for achieving the SDGs, as outlined in SDG 17 (Partnerships for the Goals).

• User-Centric Security: Fintech innovators are developing custodial wallet applications that simplify asset management while layering security protocols to protect new users.
• Collaborative Development: The industry’s response to user needs demonstrates a partnership between technology providers and communities to build tools that are both accessible and secure, ensuring that the technology can flourish and contribute positively to development goals.

Conclusion: The Future of Stablecoins in the Global Development Agenda

The adoption of stablecoins in emerging markets is a significant development in the pursuit of the Sustainable Development Goals. By providing access to stable financial tools, reducing the cost of remittances, and enabling participation in the global economy, stablecoins are directly contributing to the reduction of poverty and inequality. The continued momentum of this trend will depend on ongoing innovation, a commitment to financial education, and strong partnerships to ensure that these financial tools are deployed securely and inclusively. The long-term implications for global payroll systems and economic development warrant close monitoring as this technology becomes further integrated into the global financial landscape.

Analysis of SDGs, Targets, and Indicators

1. Which SDGs are addressed or connected to the issues highlighted in the article?

1. SDG 1: No Poverty

   • The article connects the use of stablecoins to basic survival and meeting daily needs in emerging markets. It states that for many, “remittances are a lifeline” and that the technology is used for “meeting day-to-day needs,” which directly relates to poverty alleviation.

2. SDG 8: Decent Work and Economic Growth

   • The article discusses the impact of stablecoins on “global payroll” and enabling individuals and businesses to “participate in the global economy.” By facilitating more efficient cross-border payments, this technology supports economic activities and growth.

3. SDG 9: Industry, Innovation, and Infrastructure

   • The core of the article is about a technological innovation (stablecoins) that serves as an alternative financial infrastructure. It highlights how this technology is being adopted where “the local banking infrastructure is inadequate,” thus creating a new, more accessible infrastructure for financial transactions.

4. SDG 10: Reduced Inequalities

   • The article’s central theme is financial inclusion for “high unbanked populations” in emerging markets. By providing “financial access to millions” who are excluded from traditional banking, stablecoins help reduce the inequality of access to financial services within and between countries.

2. What specific targets under those SDGs can be identified based on the article’s content?

1. Target 1.4: Equal rights to economic resources, including access to financial services

   • The article directly addresses this target by describing how stablecoins provide “financial access to millions” and are a solution for “high unbanked populations that struggle to retain the value of their savings.” This demonstrates the provision of access to new financial services and technology for vulnerable populations.

2. Target 8.10: Expand access to banking, insurance and financial services for all

   • The article explains that stablecoins are gaining traction “predominantly in areas where traditional banking struggles” and where services may not be “readily accessible.” This positions stablecoins as a tool to expand financial services to those underserved by domestic financial institutions.

3. Target 10.c: Reduce transaction costs of migrant remittances

   • The article emphasizes that stablecoins offer a “more efficient way of sending money to loved ones or businesses” and are used for remittances in countries like the Philippines, India, and Pakistan. This efficiency directly implies a reduction in the transaction costs associated with remittances, which is the core of this target.

3. Are there any indicators mentioned or implied in the article that can be used to measure progress towards the identified targets?

1. Volume and adoption of new financial technologies

   • The article provides a specific metric for the adoption of this technology: “In Q3 2025 alone, Tether’s USDt and Circle’s USDC accounted for nearly 40% of the total crypto volume.” This data point serves as a direct indicator of the scale and adoption of these new financial tools.

2. Volume and value of remittances

   • The article implies this indicator by stating that the “average stablecoin transfer ranges from $100 to $500,” indicating a focus on small-value remittances. It also notes that countries like the Philippines “rely heavily on remittances,” suggesting that the total volume of stablecoin-based remittances is a key measure of impact.

3. Proportion of population using digital financial services

   • The article’s focus on providing financial access to “high unbanked populations” and “millions” of users implies that a key measure of success is the increase in the number of people using these digital financial tools. The growth in users of custodial wallet applications is a tangible way to track this progress.

SDGs, Targets and Indicators Table

Source: onesafe.io