Stablecoin Payments Glossary
Foreign Exchange Conversion
Foreign exchange conversion is the process of exchanging one currency for another in international payment transactions.
Explanation
In stablecoin payment flows, conversion may involve changing a dollar-denominated stablecoin into local fiat currency or another digital monetary instrument. FX costs can arise at entry, settlement, or withdrawal points.
Why it matters
Foreign exchange remains a major friction point in international payments, even when stablecoins are used as transfer rails.
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