A corner of the crypto news realm has been keeping at least a passing eye on stablecoins. As many search for some stability within the digital assets space, stablecoins appear to be the answer to those prayers. Because of the stability offered, more and more merchants are at least entertaining the idea of allowing stablecoins as a payment method.
Australia has been at the forefront of the stablecoin movement, holding an edge over the Asia-Pacific region. Australia is also at the forefront when it comes to full digital finance adoption. For that reason, stablecoin payments make sense for Australia as a whole.
Enticing as it may seem to Australian startups, freelancers, and crypto-friendly corner stores, there are things to be aware of before making the foray into the crypto space. Stablecoins offer the potential for lower transaction costs, opening up potentially new financial avenues for businesses everywhere, but there are things that each business should be aware of.
Cross-Border Payments
One of the most enticing aspects of implementing stablecoins is their ability to become a cross-border payment method. By implementing stablecoins as a method for cross-border payments, merchants are opening up the potential for greater transparency, savings, speed, and global reach.
Speed. When using traditional payment methods, you could be waiting several business days for things to clear. When using stablecoins, transactions are settled within a handful of minutes, meaning transactional certainty in far less time.
Transparency. Utilising blockchain technology, transactions and payment records are accessible through blockchain ledgers. This means that every transaction is not only clear, but it can’t be altered or changed at any time.
Savings. Transaction costs, particularly at traditional financial institutions like banks and remittance services, can be quite high. Having access to stablecoins means having far lower transaction costs, saving a substantial amount of money over time.
Global Reach. The beauty about stablecoins is that anyone with a compatible wallet is capable of receiving stablecoins, even if there are strict banking rules in that country.
Broadening Crypto Literacy
One of the biggest hurdles when it comes to being involved in cryptocurrency and digital assets is literacy within that space. If it feels like a lot of information coming at you in a short period of time, that’s because it is a lot of information coming at you in a short period of time.
The implementation of stablecoins means a broader implementation of crypto literacy. Australians, in particular, are becoming far more knowledgeable about the use cases of blockchain and cryptocurrency technology, even beyond the traditional means of investing.
More Affordable Global Banking
It has been mentioned before, but transactions through traditional financial means can equate to some seriously expensive fees. Through the implementation of stablecoins, global banking has become far more affordable.
Payments through international wire transfers or PayPal can equate to a lot of sunk costs for individuals and small businesses. With stablecoins, start-ups and freelancers, especially those who work across borders, will be able to receive payments far faster and more cheaply than through traditional means.
Safeguarding Against Currency Fluctuations
Another major benefit of implementing stablecoin payments is the ability to protect against potential currency fluctuations. Stablecoins are able to offer protection to both freelancers and businesses alike since they can also receive payments in USD from stablecoins like UDSC. With a broader range of potential international customers, being able to accept stablecoins means having an extra layer of protection against those fluctuations that can quickly become costly. That’s not even mentioning the access to global digital commerce that stablecoins can bring.
Key Compliance and Regulatory Requirements in Australia
While the focus of investors is on crypto prices, vendors and merchants have a focus on regulations instead. With a rapidly evolving stablecoin compliance, there are areas within that realm that require strict regulation. Let’s look at the three basic areas of focus.
AISC Oversight
According to the Australian Securities and Investments Commission (ASIC), stablecoins, wrapped tokens, and digital wallets are now all considered financial products under the Corporations Act 2001. Entities that provide services related to, deal in, or issue stablecoins are required to hold an Australian Financial Services (AFS) licence.
There have been class exemptions introduced in 2025. This allows certain intermediaries the ability to distribute stablecoins so long as they are issued by an AFS-licensed entity without needing to have their own AFS licence.
AUSTRAC Oversight
There is further oversight from the Australian Transaction Reports and Analysis Centre (AUSTRAC). All digital currency exchange providers, even those who simply facilitate stablecoin trading, are required to be registered as a reporting entity with AUSTRAC.
All registered entities are required to comply with the Anti-Money Laundering and Counter-Terrorism Financing Act of 2006. Within those compliance obligations is the implementation of the know-your-customer (KYC) process. Additionally, entities are required to report suspicious transactions, perform ongoing monitoring, and are obligated to retain records for seven years.
Because of recent reforms, which will become effective March 31, 2026, the scope of AUSTRAC regulation will cover anything deemed a “virtual asset”, not only digital currencies that can be exchanged for fiat currencies.
RBA and Treasury
The Reserve Bank of Australia (RBA) is also beginning to explore the implications that stablecoins could have on their financial stability and monetary policies. RBA has even run a few pilot projects based on the use of private stablecoins as a payment method.
Similarly, the Australian Treasury has been working for some time on a comprehensive regulatory framework as it relates to digital assets. This would include specific legislation relating to stablecoin payments. It is anticipated that they will be regulated as a type of tokenised stored value facility.
What Australian Businesses Need to Do
With regulatory actions in mind, businesses that plan to implement stablecoins in the near future should take a few key courses of action. For starters, they will need to assess whether their activities will fall under the aforementioned financial product guidelines issued by ASIC. They will also need to determine if an AFS licence is required to offer these products.
Australian businesses will also need to keep up with compliance as it relates to AUSTRAC’s anti-money laundering and counter-terrorism financing obligations. They will also need to be current with ASIC guidance and Treasury legislation to ensure that they are keeping in lockstep with changes to the regulatory landscape.
Opening Doors
At the end of the day, this potentially opens the doors for Australian businesses to bridge the gap between themselves and the digital asset world. Being able to accept stablecoins as a payment method would mean access to a greater number of customers and more potential avenues for revenue.
It isn’t as simple as deciding to accept stablecoins as a method of payment, however. Maintaining regulatory compliance will be crucial. A misstep could be costly, especially if fines are levied. Still, this could be potentially exciting for Australian businesses as they move into the future of the marketplace.
