Cross-border transfers in government-issued currencies via SWIFT (wire) transfers remain the most common and default option. Meanwhile, financial service companies such as Revolut and PayPal have developed faster, safer, and more convenient transfer technologies. However, cryptocurrencies (especially stablecoins, which are pegged to fiat currencies) are gaining traction as an alternative due to their speed, cheapness, and transparency. Their use is likely to increase.
Cross-border transfers today
Cross-border transfers are rising. GlobalData predicts a 58% increase in cross-border payments within the EU between 2023 and 2028. Causes include increased globalisation, e-commerce, remote workers, and migrant workers.
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High-volume, low-value cross-border transfers are surging, with e-commerce, small businesses, freelancers, and gig economy workers all contributing to this trend. 57% of e-commerce shoppers made international purchases in the past year, and this has increased consumer cross-border transaction activity by 43% annually, according to GlobalData.
Cross-border transfers are increasingly relied on and will benefit from and increase with greater speed. In 2024, GlobalData found that over half of global consumers use international real-time payments to send money to family and friends and pay for goods and services.
Currently, SWIFT transfers are relatively slow, with most banks reporting a speed of between one and five days. The Bank of International Settlements finds that most of the delay is due to the beneficiary (receiving) bank waiting for operating hours to validate transfers, as well as the need to perform compliance checks.
The advantages of cryptocurrency
Cryptocurrency transfers are cheaper than conventional cross-border transfers. While SWIFT transfers require a fee because they involve intermediary banks, cryptocurrency transfers involve a very small network fee, which is used to incentivise validation by miners. The World Bank found that cross-border wire transfers charge, on average, a 6.3% transfer fee. Meanwhile, Solana transfers typically cost less than 1%. Cryptocurrency transfers, however, involve hidden costs in setting up crypto wallets (hardware/software that manages access to assets), buying cryptocurrency, and operating transfers without institutional support or protection.
Cryptocurrency transfers are also faster and more accessible because they do not require intermediate banks. Cross-border transfers are settled within seconds or minutes. For example, Ripple transfers are settled within three to five seconds, compared to several days for conventional transfers. Additionally, cryptocurrency transfers are not constrained by banking hours or currency exchange channels.
Cryptocurrency transfers provide security and transparency. By design, anyone can access the transaction status of cryptocurrency transfers. As decentralised assets, cryptocurrencies cannot be frozen or blocked by governments or banks. Nearly all cryptocurrencies involve a blockchain—a public and chronological record of transactions. Every new transaction is validated, time-stamped, and permanently recorded inside this blockchain. Most cryptocurrencies allow the public to access, monitor, and audit blockchains. Governmental organisations similarly use this feature to record and regulate transfers.
Governments are allowing the regulated use of cryptocurrencies and stablecoins
Institutions and governments are increasingly adopting cryptocurrencies, especially in the US. The US GENIUS Act, passed in July 2025, legitimised and regulated stablecoin use. Banking and financial technology institutions were permitted to issue stablecoins under centralised regulation. The act is expected to increase growth, innovation in and usage for stablecoins, as well as produce a flow-on effect across the globe. Citi Bank increased its forecasts for total stablecoin issuance in 2030 from $1.6tn to $1.9tn.
Doubts about the technology
However, there are major drawbacks to consider. Most significantly, cryptocurrencies are banned or restricted in numerous states. American economist Joseph Stiglitz argued that bitcoin’s anonymity encourages money laundering. This is a common justification for bans (eg in Morocco). Meanwhile, China bans cryptocurrencies and promotes a digital currency pegged to the Yuan, which remains under governmental control. South Korea and India do not completely ban cryptocurrencies but place restrictions on their use, with clear regulatory supervision and taxes.
Today, cryptocurrency is primarily used as an investment asset rather than a medium of exchange. In a recent Blockchain in Financial Services report, GlobalData found that most users do not fully understand the technology and feel that they must navigate complexities such as network selection, fee calculation, and address validation without the support of conventional financial institutions. As a result, an overwhelming majority of individuals report using cryptocurrency as a form of investment rather than a payment mechanism. The volatility of cryptocurrencies such as Bitcoin also provides the potential for dramatic short-term returns.
Conclusion
Cryptocurrency cross-border transfers offer advantages over SWIFT transfers and are likely to become more common. This could be supported by increased state-level legitimisation, institutional use, and more education and understanding for the public.
This increase will, however, be limited in extent and speed by territories restraining or banning cryptocurrency use, its complexity to understand and operate compared to SWIFT transfers and fintechs such as PayPal, and the lack of a bank’s support and protection in the event of fraud or the loss of funds.
Alexander Sun is an analyst, Strategic Intelligence at GlobalData
