A recent report by the European Central Bank (ECB) has highlighted the increasing popularity of Bitcoin in emerging markets. The study reveals that the instability of local currencies and the need for affordable cross-border transactions are driving the use of cryptocurrencies in these regions. This raises concerns about financial stability and the future of international remittances.The study analyzes Bitcoin transactions against 44 fiat currencies on major peer-to-peer cryptoasset exchanges. It examines the factors influencing Bitcoin trading volume, including intrinsic drivers of the cryptoasset market and external influences from global financial markets and local macroeconomic factors.The results indicate the presence of a global cryptoasset cycle driven by speculation. Factors such as volatility, momentum, liquidity, and volatility in the cryptoasset market, as well as global financial market indicators, play a significant role in Bitcoin trading.In emerging and developing markets, Bitcoin serves not only as a speculative investment but also as a transaction medium. The increase in Bitcoin trading in these markets is associated with the instability of local currencies, suggesting that Bitcoin is used as a medium of exchange or store of value in contexts of high inflation or currency depreciation.There is a correlation between Bitcoin usage and countries with young and less risk-averse populations, indicating a greater openness and familiarity with emerging technologies among young people.The International Monetary Fund (IMF) has expressed concerns about the potential impact of cryptocurrencies on volatile economies and as a means to circumvent controls. The report concludes by noting potential risks to financial stability in countries with limited financial development and unstable fiat currencies.Given the importance of unstable currencies and the need for cross-border remittances, it is crucial to determine which of these factors is more influential. This is especially relevant as the G20 is addressing the costs of remittances while volatile currencies pose a complex challenge.Specific cases, such as Mexico and China, demonstrate the varying adoption of cryptocurrencies. Mexico, despite having a volatile currency and substantial remittances, ranks lower on the cryptocurrency adoption list, possibly due to the country’s ban on cryptocurrencies and the widespread use of the U.S. dollar as an alternative value and medium of exchange.In summary, Bitcoin is widely used as a speculative investment asset in advanced, emerging, and developing economies. However, in emerging markets, it also serves as a means of payment due to exchange rate instability, limited development of digital payment systems, and a younger population. These findings provide a comprehensive understanding of the drivers of Bitcoin trading, emphasizing the importance of both speculative and transactional aspects in contexts of macroeconomic instability and in markets with less developed financial infrastructure.