The tax treatment of stablecoins can significantly impact their global adoption. Inconsistent tax regulations across jurisdictions create complexity for users and businesses, potentially discouraging widespread use. For instance, some countries classify stablecoin transactions as taxable events, subjecting them to capital gains or income tax, while others lack clear guidelines, fostering uncertainty. This regulatory patchwork increases compliance costs and risks for cross-border transactions, a key use case for stablecoins. Additionally, stringent tax reporting requirements could deter retail and institutional adoption, as users may prefer assets with simpler tax frameworks. Harmonizing tax policies globally or providing clearer, more favorable tax treatments could enhance stablecoin accessibility and trust, boosting their adoption. However, without such alignment, tax-related friction may hinder their potential as a seamless, borderless digital currency.