Is it possible to travel the world using only stablecoins?

Key takeaways

With growing adoption, traveling the world using only stablecoins is feasible, covering flights, hotels and dining.
To travel around the world with stablecoins, you must acquire stablecoins via exchanges and transfer them to your crypto wallet.
Stablecoins offer protection against currency fluctuations, low transaction fees and nearly instant transfers for international payments.
You need to figure out flights, hotels, restaurants and shopping destinations that accept crypto and plan your travel accordingly.

As a seasoned traveler who’s been around the globe more times than I care to count, I can attest that the concept of traveling with stablecoins is nothing short of revolutionary. Over the years, I’ve juggled currencies, dealt with exchange rate fluctuations, and paid hefty fees for international transactions. But with stablecoins, I see a future where these hassles are a thing of the past.

If traveling around the world has long been a desire of yours and all you have in your wallet are stablecoins, you may be curious if it’s possible to make this dream come true without exchanging the stablecoins for cash. Due to the increasing global acceptance of cryptocurrency, it is now practical to explore the globe using only stablecoins as your means of payment.

As a crypto investor, I’ve found that stablecoins open up fascinating opportunities for my global travels. They can be used for everything from booking flights and hotels to enjoying local cuisine at restaurants, but it’s crucial to keep in mind the differences in regulations, merchant acceptance, and transaction fees across different countries.

This guide examines the possibility of using stablecoins as a practical choice for international travel, emphasizing their potential advantages while also outlining challenges you might encounter during your journeys.

What are stablecoins?

Stablecoins, a type of digital currency, aim to keep their worth consistent. The question is, what keeps them from fluctuating in value?

They are pegged to an underlying asset, like the United States dollar or gold, for stability. Unlike other cryptocurrencies that can be highly volatile, stablecoins offer a secure way to store and transfer value, which makes them particularly appealing for international travel, where currency fluctuations can sometimes create uncertainty.

Examples of stablecoins, like Tether’s US Dollar Token (USDT) and USD Coin (USDC), are frequently utilized in transactions and play a vital role in the functioning of the digital economy.

As more businesses worldwide embrace cryptocurrencies as a payment method, travelers can conveniently utilize their digital money without relying on conventional banking networks or foreign currency exchange providers.

But is it realistic to travel the world relying solely on stablecoins?

Let’s find out.

Preparing for your digital journey: How to get started with stablecoins

To embark on your journey, the initial move should be securing the necessary stablecoins. Plan your trip, establish your financial needs, and obtain the required amount of stablecoins.

Here is how you can acquire the stablecoins:

Create an account on a crypto exchange: Create an account on platforms like Binance, Coinbase or Kraken to buy stablecoins like USDC or USDT. You will need to complete the Know Your Customer (KYC) process to complete the sign-up process.
Fund your account: Deposit fiat currency in your exchange account through bank transfer, card payment or other supported methods.
Purchase stablecoins: Buy stablecoins like USDT or USDC with a debit or credit card connected to your bank account. To complete the buying process, select the stablecoin, pay for the chosen amount, and confirm the transaction.
Set up a crypto wallet: To store your stablecoins securely, get a wallet like MetaMask or Trust Wallet. For convenience, software wallets, including exchange wallets, are available. You can also opt for hardware wallets if you don’t want to hodl your crypto.
Transfer stablecoins: Transfer the stablecoins you purchased from the exchange to your wallet by copying the address and initiating a transfer.

With stablecoins in your wallet, you are now all set to go hopping around the globe!

Setting the scene: A traveler’s journey from New York to Singapore with stablecoins

Let’s take an example to help you understand if you can travel the world using only stablecoins.

Picture yourself as a passionate cryptocurrency aficionado, an ardent supporter of stablecoins, residing in the vibrant city of New York. You’ve made an exciting decision to embark on a global journey, relying solely on stablecoins for your transactions.

Beginning in North America, your journey takes you from New York to Toronto, then continues through Europe with visits to Edinburgh and Amsterdam, before concluding in Asia, specifically Singapore. This trip will provide insight into the locations where and how one can utilize stablecoins for effortless, boundary-free transactions across continents, bypassing conventional currency exchanges.

How to book flights and accommodation using stablecoins

Imagining your scenario, let’s say you kick off your adventure by reserving all your travel arrangements, including flights, using digital currencies known as stablecoins. Being a crypto enthusiast, you opt for a travel service platform named Travala.com, which accepts these stablecoins for booking flights, hotels, and various other travel services.

On Travala.com, you can easily pay for transactions using various cryptocurrencies like stablecoins without having to convert them into traditional money first, as shown in the image provided.

On Travala.com, a wide range of digital currencies are accepted, such as Bitcoin (BTC), Ripple’s XRP (XRP), and Solana (SOL). Here’s a glimpse:

The image below shows how you can pay for trips to Toronto, Edinburgh, Amsterdam and Singapore. For example, you may transfer 77.92 USDT via the TRC-20 network to a provided wallet address or simply scan a QR code within 30 minutes. Once verified, Travala.com confirms your reservation.

Just like reserving airline tickets, you can easily arrange accommodations through Travala.com. Here’s a simple breakdown of the process: Choose your desired locations, decide on the length of your stay, and select your travel dates.

Where to spend stablecoins in New York

In New York City, travelers have numerous choices for spending their digital currencies, whether it’s everyday items or high-end luxuries. Nowadays, upscale retailers such as Gucci are accepting cryptocurrencies, allowing customers to buy designer clothing and accessories using stablecoins. To make a purchase at the Gucci store, you simply receive an email with a QR code, which you can then scan from your crypto wallet to complete the transaction.

In New York City, there are numerous establishments like restaurants, cafes, and bars that welcome cryptocurrencies. You might stroll into any of these places to enjoy a variety of meals and drinks. Establishments such as Starbucks, Subway, and Burger King accept gift cards bought using stablecoins as payment.

Additionally, you might find that stablecoins are suitable for transactions in services such as ride-sharing. Certain Uber and Lyft drivers in specific regions have started to accept cryptocurrency payments via intermediary services like BitPay.

As a data analyst, I’d like to bring your attention to an important aspect regarding refunds: Given the fluctuating prices and compliance with regulations, any refunds (should they apply) will be issued in the form of Travel Credits that will be directly added to your Travala.com account.

Second stop: Toronto — Cross-border travel begins

Toronto stands out as a bustling center for cryptocurrency, a fact that’s not unexpected considering its emphasis on financial advancement and innovative thinking. Frequently, it serves as the venue for various blockchain meetings, such as the yearly Blockchain Futurist Conference.

Many businesses in the city and surrounding areas happily take cryptocurrencies as a means of payment. Here’s a guide on navigating Toronto with stablecoins:

Snakes & Lattes (board game cafe): If you’re in the mood for some fun, head to Snakes & Lattes, where you can grab a game and pay with stablecoins.
Urban Living Suites (accommodations): Looking for a place to stay? Urban Living Suites offers comfortable stays for crypto travelers. You can pay for your room using stablecoins without worrying about traditional currency exchanges.
Gogo Sweaters (apparel): If you’re in need of some cozy Canadian fashion, check out Gogo Sweaters. The company makes hand-knit sweaters, and you can pay for them with stablecoins.
Figures (restaurant): Ready for a meal? Figures, a local restaurant with a diverse menu, is another spot that accepts stablecoins. Whether you’re after something casual or a bit more upscale, you can settle the bill in crypto.
Instacoin ATMs (currency exchange): If you need to switch your stablecoins for regular currency, there are Instacoin ATMs scattered around the city. It’s quick and easy, so you’re never far from converting your crypto to cash.
Crypto-exclusive tour (explore Toronto): Feeling adventurous? You can take a full crypto-exclusive tour of the city and pay for everything with stablecoins. It’s a fun way to experience Toronto while being completely immersed in the crypto world.

Fun fact! By September 10, 2024, the market cap of fiat-backed stablecoins had soared to a staggering $161.2 billion, yet it fell short of the record high reached in 2021 at $181.7 billion.

Third Stop: Edinburgh — Exploring the UK with stablecoins

In Edinburgh, you’ll find the allure of Scotland, all the while enjoying hassle-free transactions with reliable digital currencies known as stablecoins.

Hotels and accommodation: Book your stay through Travala.com, which accepts stablecoins directly for hotels, ensuring you don’t need to convert to traditional currencies.
Dining and shopping: While direct crypto payments are limited, you can use CoinGate gift cards to purchase Uber and Uber Eats services or shop on Amazon UK by redeeming gift cards bought with stablecoins.
Transportation: You can use CoinGate Gift Cards to pay for Bolt rides in Edinburgh, providing a seamless travel option using your digital assets.

In my experience as a crypto investor, I’ve noticed that Edinburgh has fewer direct usage options for stablecoins when compared to bustling cities like Toronto and New York. However, the existing choices enable me to comfortably navigate Edinburgh without having to stray too far from my preferred digital currency.

Fourth stop: Amsterdam — Navigating the Netherlands with stablecoins

In simpler terms, Amsterdam is known for its abundant cultural and historic charm, lively nightspots, and varied food culture. The city’s vast canal system helps reduce traffic congestion, making it a perfect place to explore by bike. Riding a bicycle allows you to truly immerse yourself in the city.

Here’s how you can enjoy Amsterdam using stablecoins:

Starbikes: The cycling service offers the convenience of bicycle rentals using crypto. Alternatively, if cycling isn’t your preferred mode of transport, consider a group boat tour.
Amsterdam Boat Events: It provides a range of crypto-friendly options, including the enticing prospect of enjoying a barbecue on your own private boat.
Barbershop: For a more unconventional experience, you could visit Barbershop, which offers a unique blend of social gatherings, refreshments and personal grooming services.
Gentle Place Coffee: In Gentle Place Coffee, you can refresh yourself with hot coffee.

Though the merchants mentioned don’t directly confirm they accept stablecoins, there’s a possibility that you could utilize them indirectly by means of gift cards.

Have you heard? By the end of the second quarter in 2024, on June 30th to be exact, stablecoin transactions amounted to an astounding $8.5 trillion across approximately 1.1 billion transactions. This impressive volume far exceeded Visa’s transaction volume for the same period by more than twice, which was $3.9 trillion.

Final destination: Singapore — Stablecoins in the heart of Asia

Under supportive regulations for cryptocurrencies, an increasing number of Singaporean businesses are accepting payments made with stablecoins. Whether it’s purchasing a watch or a bag, you can confidently spend your cryptocurrency without worry.

Here are a few places you can visit in Singapore using stablecoins:

Charles and Keith: Charles and Keith is a Singaporean fashion house label where you can buy footwear, handbags, shoes and children’s clothes with accessories using stablecoins.
Uchu Wasi: When you have enough shopping and sightseeing, you can walk into Uchu Wasi and enjoy world-class cuisine using USDT and USDC.
2ToneVintage: At 2ToneVintage, you can buy vintage watches, wristwatches and pocket watches with stablecoins.
Sarnies: It is a cafe where you can enjoy gourmet sandwiches, soups, salads and homemade bakery treats and pay with stablecoins.

To reserve a taxi in Singapore with digital currency (stablecoins), you can utilize the ride-sharing app Tada for this purpose.

The benefits of traveling with stablecoins

As you might have understood, there are many benefits to traveling with stablecoins:

Protection against currency fluctuations: Stablecoins save you from traditional exchange rate fluctuations and protect you from the typical volatility seen in other cryptocurrencies. However, it’s important to note that stablecoins rely on the stability of their underlying asset.
Low transaction fees: You don’t need to pay hefty fees for international transfers often charged by traditional banking systems for cross-border payments.
Speed and ease of transfers: You can transfer stablecoins nearly instantaneously, unlike conventional bank transfers, which can take several days to process.

Challenges you might face using stablecoins

Given the global adoption of stablecoins, using them for cross-border payments is a practical use case, but it’s not without risks:

Limited acceptance: While many businesses accept stablecoins, there are still some countries and establishments where you may encounter limitations. Therefore, research before filling your wallet with stablecoins to travel across continents.
Regulatory concerns: Some countries have stringent regulations on cryptocurrency, which could restrict your ability to use stablecoins freely.
Volatility of crypto exchanges: Although stablecoins are designed to be stable, fluctuations in crypto markets or sudden regulatory changes may affect their value.

Are stablecoins the future of international travel?

Travelers today might opt for stablecoins because they offer advantages similar to digital currencies but with the added benefit of price consistency. These globetrotters typically prioritize swift transactions, avoid conventional foreign exchange charges, and seamlessly move across borders without encountering financial hassles.

However, challenges remain. Limited merchant acceptance, regional crypto regulations, and reliance on the stability of the underlying asset mean stablecoins are not yet a universal solution. This requires travelers to plan and ensure they choose crypto-friendly countries and reliable platforms to convert stablecoins if needed.

In this piece, we delve into the idea of traveling between different urban areas employing stablecoins as a mode of payment. The utilization and approval of stablecoins can vary depending on your travel itinerary, as certain locations prove to be more receptive to cryptocurrencies compared to others. Conducting thorough research, being well-prepared, and maintaining flexibility are crucial factors that will enable you to successfully execute such a journey.

In my analysis, the expanding worldwide use of digital currencies could be indicative of a time when traversing the globe without physically handling traditional (fiat) money might become standard practice.

Is it possible to circumnavigate the globe by solely relying on stablecoins? With appropriate preparations and suitable locations, the response is more often becoming “yes.

Wish you safe and seamless travels as you embrace the future of finance!

2024-12-25 12:57