Future of global payments in emerging markets: Are traditional banks faltering?

By Muyiwa Adegboye

AS someone who has advocated against the operational structure of traditional banks in my region, I know the discourse on the troubles faced by the citizenry of emerging markets with banks like the back of my hand. So I decided to test out this theory and walked into my local bank branch in my area on a random Monday morning and what I saw was nothing short of an eyesore: long stretched out queues, merchants clutching numerous documents just to solve mundane tasks like transfers and daily payments and adults going through hurdles just to make or receive foreign payments. In 2025, what should be routine financial transactions too often become an exhausting rituals, slow, expensive, and quite unpredictable. This cannot be standard we have come to accept.  For decades, banks in Africa, Latin America, and South Asia have promised modernization. Yet the reality on the ground is one of under-inclusion: millions of people excluded from the formal system, high inflation eating away savings, and remittances still trapped in legacy rails. The world is digitizing, but large parts of the banking system in these regions remain stuck in the last century or those that choose to modernize are still stuck to mediocrity.

It’s against this backdrop that stablecoins or other currencies have quietly become the backbone of cross-border finance in many emerging markets. In this article, we as  a group are here to prove why a new Bitcoin anchored chain called Plasma is positioning itself as the infrastructure layer that could make these digital dollars truly mainstream. Plasma is a purpose-built Bitcoin sidechain designed specifically to be the home for stablecoins. Plasma’s architecture is optimized for stablecoin settlement, cross-border payments, and low-cost transactions. What makes Plasma stand out is its native integration with Tether’s USDT technology, making it one of the first chains where stablecoins are not just an add-on, but the core infrastructure.  The infrastructure is founded by the Plasma Foundation (@PlasmaFDN on X), and is backed by Bitfinex and Tether, which has positioned itself as a global leader in bringing stablecoin rails to emerging markets.

The state of banks in emerging markets: Emerging market banks have long been burdened with structural weaknesses. In sub-Saharan Africa, fewer than 45 per cent of adults have a bank account, according to the World Bank’s 2024 Global Findex report. In South Asia, that figure rises, but usage often remains low: accounts sit dormant because minimum balance requirements and high fees make them impractical for daily regional and foreign use. Then there is also the issue of remittances, a lifeline for millions. Migrant workers from India, the Philippines, and Nigeria collectively send home hundreds of billions annually. Yet according to World Bank data, the average cost of sending $200 across borders is still 6.2 per cent in many developing corridors—double the UN’s Sustainable Development Goal target. Banks are often the most expensive channels and the receivers of these fees.   Inflation compounds the problem. Argentina saw consumer prices soar more than 250 per cent in 2024, while Nigeria crossed 30 per cent inflation this year, though it now on a downward trend that is largely influenced by the rebasing of the economy. For families, saving in local currency has meant losing purchasing power at an alarming pace. Even where banks function somewhat smoothly, they cannot offer citizens protection from macroeconomic instability. In short, traditional banks in these markets are both under-inclusive and severely under-performing.

 A new currency for a new era: Oginally curated as niche instruments in crypto markets, they are now used daily by ordinary people far from Wall Street or Silicon Valley. According to data from CCData, stablecoin transaction volume hit $8.9 trillion in the first half of 2025, more than Visa and Mastercard combined. Tether’s USDT alone accounts for over 70 per cent of that activity. Nowhere is adoption stronger than in emerging markets. In Nigeria, informal merchants often accept USDT as readily as the local naira. In Venezuela, families use stablecoins to hedge against hyperinflation. In parts of Southeast Asia, workers send USDT home instead of wiring money through banks to mitigate against fees. Stablecoins have become not just a crypto innovation, but a parallel monetary system. Yet until recently, they lacked infrastructure truly optimized for their use in the consumer economy.

Voices from the ground: To better understand what people actually want, the Tether guild circulated a Google Form across various online communities and social media across, X (previously Twitter), discord, WhatsApp and instagram. We got over 300 responses and the responses are quite telling. The survey participants predominantly fall within the younger age groups. With the majority of respondents being between 18-24 and 25-34 years old. When asked about their satisfaction with traditional banks, respondents provided varied feedback. The satisfaction ratings were spread across different categories, with the “Neutral” and “dissatisfied” ratings being the most common. This suggests that while a significant portion of the population is discontented, there is still a substantial segment that is either indifferent or somewhat satisfied with existing services. The survey results also indicated a relatively high level of awareness of stablecoins, with the majority of respondents stating they were aware of them before the survey.

Furthermore, the data shows that a strong majority of respondents trust blockchain for financial use, highlighting a positive sentiment towards the technology in emerging markets. The analysis also explored the respondents’ views on how a technology like Plasma could interact with traditional banking. The results show that most respondents believe Plasma should “Complement” traditional banking services rather than “Replace” them. A minority  portion of respondents also believed it should “Replace” traditional banking, and a small number of respondents were not sure. The data points to a strong belief that Plasma, could play a role in improving the current financial landscape by working alongside traditional systems, rather than entirely dismantling them. While sharing the survey with a family friend, a freelance fashion designer, gave his input summing the entirety of the survey up candidly: “If there is a way I can get my money faster and cheaper. I will definitely go for it.”  A simple but consise statement that sums up his needs.

 It’s important to note this is someone with zero history in crypto whatsoever. 

This sentiment is echoed globally. Real time practicality is the goal, people want product that serve daily needs.

This is where Plasma comes in. For those who are not aware, Plasma is a purpose built sidechain of Bitcoin designed specifically for stablecoin usage. Instead of layering on top of Ethereum or Tron, Plasma uses Bitcoin’s infrastructure as its anchor bringing not only speed and low cost but also the security guarantees of the most battle tested blockchain in existence.

Its features map almost perfectly to the needs expressed in our survey:

                •             Zero-fee USDT transfers. Unlike banks, Plasma subsidizes transaction costs, making everyday transfers free.

                •             Privacy. By anchoring its state to Bitcoin, Plasma ensures confidentiality and protection at the level of Bitcoin’s security model, addressing consumer concerns about exposure.

                •             Customizable gas tokens. Users can settle fees in USDT or their native token XPL, avoiding volatility shocks that plague other chains.

Secondary data reinforces this transition.

                •             Bank penetration: In sub-Saharan Africa, fewer than half the population has a bank account; in Nigeria, the number is just over 40%.

                •             Stablecoin penetration: A 2025 report by Chainalysis shows Nigeria and Turkey ranking among the top five countries for stablecoin adoption globally, with millions of wallets actively using USDT.

                •             Cost comparison: The median cost of sending remittances via traditional banks is 6–7%. On stablecoin rails, the cost often rounds to zero.

                •             Sentiment: A Fireblocks survey found that 58% of traditional banks are now experimenting with stablecoin payments not because they want to embrace crypto, but because their customers are demanding it.

 *Complementing not Replacing should be the goal.*

In the growing conversation about financial inclusion, stablecoins have often been pitched as a panacea for all the shortcomings of traditional banking in emerging markets. There is some truth here: they allow for cheaper, faster, and borderless transactions, a far cry from the bureaucratic hurdles, limited access, and high fees that continue to characterize many legacy banking systems. But the narrative that stablecoins alone will solve financial access is flawed and potentially misleading.

*Stablecoins Are Not a Silver Bullet*

Despite their promise, stablecoins face a number of challenges. The first is volatility of trust. While denominated in currencies like the U.S. dollar, their credibility depends heavily on issuers maintaining adequate reserves and transparent audits. Any lapse, whether real or perceived can easily erode user confidence overnight. Second, regulation is still evolving. The GENIUS Act in the United States has provided a framework, but in most emerging markets, regulators remain cautious or outright hostile. Without clear policy guidance, adoption risks remains on the fringes, rather than entering the mainstream economy. Third, accessibility is often overstated. While sending stablecoins can be as simple as scanning a QR code, it still presupposes access to a smartphone, reliable internet, and a basic level of digital literacy. In rural areas across Africa, South Asia, and Latin America, that assumption is far from universal. Traditional banks, despite their inefficiencies, still provide critical physical infrastructure from branches to ATMs that can still serve communities that possess these inadequacies.

Lastly, stablecoins by themselves do not address broader financial needs such as credit, mortgages, and long-term savings products. People don’t just want to move money—they need to build wealth, borrow against collateral, and safeguard pensions. This is the realm where banks still hold an undeniable advantage. And this is where Plasma must frame itself carefully. Being optimized for stablecoins, Plasma offers speed, security, privacy, and low-cost transfer’s core attributes that can drastically improve how individuals and businesses transact. Yet, Plasma believers does not seek to displace banks; rather, it can extend the reach of banking services in ways that legacy systems alone cannot achieve.

For example, Plasma can serve as the transaction layer, enabling near instant, zero-fee stablecoin transfers across borders. Meanwhile, banks can continue providing the savings and credit infrastructure that consumers trust. The result of these analyses promotes a a hybrid model: Plasma functioning as the fast reliable global payments rail, while traditional banks remain custodians of longterm financial stability.This synergy also creates regulatory breathing room. By positioning itself as a complement rather than a disruptor, Plasma can work with banks and regulators to ensure compliance, foster trust, and enable gradual integration into mainstream financial services.

Emerging markets do not need another “bank killer” at least not at this moment, What they need is a bridge. A system where technology works with, not in against, existing institutions. Stablecoins backed by Plasma’s infrastructure offer the potential for more inclusive payments and remittances, but they should not be mistaken for a substitute for the deeper financial ecosystem that banks can provide. There is a future when the infrastructure can grow to a point when this hybrid model might be discarded, till then a balance is still needed. If this balance is struck, consumers will no longer face a choice between innovation and reliability. Instead, they will have the best of both worlds: a stable, transparent, and accessible system where traditional banks and Plasma coexist, each reinforcing the other.

•Adegboye  is a member of Tether Guild, Nigeria.

*Tether guild draws membership across the world. The guild is devoted to promoting and sensitizing citizens of the emerging markets on plasma as a premium stable-Chain*

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