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Ever Had a Client Ask, “Can We Pay You in Crypto?”
And your first thought was, “Absolutely not — I’m not risking my payment on some coin that could swing 20% overnight.”
You politely said no. And you were right.
Crypto might be exciting for trading (though that’s debatable), but when you’re running a business or freelancing for overseas clients, the last thing you need is price fluctuations and risks lurking in.
So, you stick with banks and platforms like PayPal. But that means you’re stuck with high platform fees, SWIFT delays, hidden FX charges, and endless compliance checks that slow you down.
You don’t have to settle for that anymore. There’s a better way: stablecoins.
Unlike volatile cryptocurrencies, stablecoins are built to stay steady. They work like digital dollars. Now freelancers, IT service providers, and exporters can adopt a better way to get paid.
What Is a Stablecoin?
A stablecoin is a type of cryptocurrency whose whole structure, rules, and backing system are built to keep its price steady and maintain a stable value, typically by being pegged to a reserve asset like a fiat currency (for example, the US Dollar) or a commodity (like gold).
The most popular stablecoins are USDC (USD Coin), USDT (Tether), and DAI.
How Pegging Ensures Stability
When a stablecoin is pegged, it means that for every stablecoin issued, there’s usually an equivalent real-world asset held in reserve.
So, if someone wants to redeem the stablecoin, the issuer gives them back the real money and removes the coin from circulation. This keeps its value close to the peg.
Example:
- Suppose you have 1 USDC — it’s designed to always be worth $1 USD.
- The company behind USDC holds real US dollars (or highly liquid, safe assets like short-term government bonds) in reserve.
- If demand goes up and people buy more USDC, the company issues more coins and adds more dollars to the reserve.
- If people redeem USDC for dollars, the company removes that USDC from circulation and gives you real dollars back.
Unlike traditional cryptocurrencies (like Bitcoin) or commodities (like oil or gold) that have limited supply, stablecoins can be produced (minted) in unlimited quantities — as long as there are enough reserves to back them.
How Stablecoins Remove Borders and Banks — How It Works
Let’s say you are a freelancer in Country B. You’ve just completed a project for a private company in Country A, and they want to pay you quickly, without losing money to traditional banks and currency conversion fees.
Normally, an international wire transfer would pass through multiple banks. Each bank adds its own fees, FX markups, and delays. In some cases you have to wait several days and end up receiving less than what was agreed. Stablecoins solve this problem by removing both the bank and the border from the picture.
Here’s how it works:
- The company in Country A buys stablecoins: Instead of using a bank, the company purchases a stablecoin (for example, USDC) from a licensed issuer or a crypto exchange. For every coin, there’s an equal value held in reserve, like real dollars or short-term safe assets.
- They send the stablecoins directly to you: The company transfers these digital coins straight to your crypto wallet. The transfer moves over a blockchain network, not through traditional banking channels.
- You receive the payment instantly: You get the stablecoins within minutes. No waiting for bank hours, no international wire cut-off times, and no hidden deductions along the way.
- You convert them to your local currency: Once the coins are in your wallet, you can exchange them for your local currency through a crypto exchange or a regulated partner that handles crypto-to-fiat conversions.
This entire process makes cross-border payments faster, clearer, and far cheaper.
Stablecoin Fees: What to Expect Before You Send/Receive Payment
Stablecoin transactions are much cheaper than traditional cross-border bank transfers, but they’re not entirely free. The fees depend mainly on how you send, receive, or convert stablecoins, and on the blockchain you use.
Here’s how the fees usually break down:
- Blockchain network fees (gas fees): Every stablecoin transaction on a blockchain (like Ethereum or Solana) requires a small network fee paid to validators who process the transaction. On Ethereum, these gas fees can be high during network congestion, sometimes a few dollars or more. On faster, cheaper blockchains like Solana, Tron, or Polygon, these fees are often just a few cents.
- Exchange or wallet fees: If you buy, sell, or convert stablecoins through an exchange, you have to pay a trading fee, usually a small percentage (like 0.1%–1%) of the transaction amount. Some wallets or custodial services also charge withdrawal or deposit fees.
- Conversion fees: If you want to convert stablecoins back to fiat currency (like INR or USD), the exchange or payment platform adds a spread or conversion fee on top of the standard trading fee.
- Hidden costs: While there are no hidden bank fees or FX markups like with traditional wires, some platforms add a small spread when you swap stablecoins for cash or other crypto, which affects your final amount.
Benefits of Stablecoins in Cross-Border Payments
No Borders, No Banking Hours
Traditional international bank wires can take 3–7 days due to multiple intermediary banks, time zone differences, and working hours. Stablecoins cut out traditional banking limits. There are no working-hour restrictions or holiday delays. Funds move directly between sender and receiver anytime.
Lower Costs
Cross-border bank wires and services like SWIFT or PayPal often charge high fees, plus hidden FX markups that are deducted from the amount received. Stablecoins avoid multiple intermediaries and currency conversion charges, reducing the total cost by up to 10x compared to traditional methods.
Protection Against Currency Fluctuations
For people in countries with volatile local currencies, stablecoins pegged to the US Dollar help protect earnings from sudden devaluation. Freelancers, exporters, and small businesses can hold digital dollars until they choose to convert or spend them.
Who Can Use Stablecoins for Cross-Border Payments Today?
Currently, in India, you can’t legally convert stablecoins directly to INR through banks, so while you can receive stablecoins from a foreign client, you can’t fully use them like cash domestically. Most people who get paid in stablecoins either spend them offshore (for subscriptions or paying other freelancers) or hold them as digital dollars.
There are countries where people and businesses have full flexibility to receive, hold, spend, and convert stablecoins back to local currency. Some of the most stablecoin-friendly regions today include:
Freelancers, exporters, and businesses in these regions can not only receive stablecoins but also easily convert them back to their local currency through regulated on/off ramps.
Stablecoin Adoption Over the Next 3–5 Years in India
Over the next 3–5 years, whether this changes depends entirely on RBI policy and crypto regulations. If clear rules come in and licensed on/off ramps are allowed, Indian freelancers and exporters could finally convert stablecoins legally to INR at reasonable rates. But today, that option does not exist within India’s banking framework.
FAQs
Is It Safe to Receive Large Amounts in Stablecoins?
Unlike traditional bank transfers, there is no built-in fraud protection, no intermediary who can reverse a transaction, and very limited ways to recover money if it’s sent to the wrong address or if you get scammed.
This is because stablecoin payments are not regulated like normal bank wires. On the blockchain, there is no identity verification when funds move wallet to wallet. That freedom is what makes stablecoins fast and borderless, but it also means the responsibility for security falls entirely on you (and the platform you choose).
Do You Need to Complete KYC to Use Stablecoins?
Most stablecoin payments themselves are not regulated the same way traditional bank transfers are. When you receive or send stablecoins directly (wallet to wallet), there are usually no upfront KYC checks, no paperwork, and no transaction screening happening on the blockchain itself.
The KYC only comes in when you enter or exit the system through an exchange, payment gateway, or on/off ramp that’s regulated. For example:
- If you buy USDC on a big crypto exchange, you usually have to complete KYC to link your identity.
- If you want to convert stablecoins back to INR or USD through a regulated exchange or service, you need to prove who you are.
- But if you receive stablecoins peer to peer — say a client just transfers you USDC from their wallet — there’s no paperwork, no form, and no bank involved at that stage.
Because of this, stablecoin payments can bypass traditional banking controls, which is why regulators in many countries watch them closely.
How Does Using Stablecoins Compare with Using PayPal or SWIFT for International Payments?
Stablecoins can be much faster and cheaper than PayPal or SWIFT. Transfers happen in minutes, with lower fees and no hidden FX markups. Unlike PayPal or banks, stablecoins don’t rely on banks.
What Happens if I Send Stablecoins to the Wrong Address? Can I Get It Back?
No — blockchain transactions are irreversible. If you send stablecoins to the wrong wallet address, you can’t get them back unless the owner agrees to return them. Always double-check addresses before sending.
What Is the Difference Between USDC and USDT?
The main difference between USDC and USDT is how they’re managed and how transparent their reserves are.
- USDT (Tether) is issued by Tether Limited. It is the oldest and largest stablecoin by trading volume. Tether claims each USDT is backed by reserves, but the mix includes cash, cash equivalents, and other assets. Over the years, it has faced questions about how much of its reserves are held in cash and whether they’re always fully audited.
- USDC (USD Coin) is issued by Circle (and was co-founded with Coinbase). It’s designed to offer more transparency and regulatory compliance. USDC’s reserves are mostly cash and short-term US government bonds, and these are regularly verified by independent accounting firms.
Because of this, USDC is often trusted more by businesses and institutions that want stable, predictable backing and clear reporting. USDT remains popular for its huge liquidity and global availability, but USDC is sometimes chosen for extra assurance about what’s backing each coin.
Written by
Swati Saraf
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