The sharp increase in the use of stables could flow up to $ 1 billion of emerging market banks over the next three years while savers are looking for the safety and liquidity of digital assets cut in dollars, Standard Charterd said in a Monday report.
Stablecoins give households and businesses in developing economies an alternative to local banks, accelerating a post-final change in basic banking functions in the non-banking sector, analysts Geoff Kendrick and Madhur Jha wrote.
Stablecoins are cryptocurrencies whose value is linked to another asset, such as US dollar or gold. They play a major role in the markets of cryptocurrencies, providing, among other things, payment infrastructure, and are also used to transfer money internationally.
The adoption of these cryptocurrencies was the strongest in countries with weak currencies and high inflation, notably Egypt, Pakistan, Bangladesh and Sri Lanka, where the risks of deposit flight are acute, analysts wrote.
Even without proposing yields, now prohibited under the American engineering law, stablescoins attract hierarchical users by the preservation of capital, according to the report.
Standard approved forecasts The global market for stablescoin will reach 2 dollars billions by 2028, with about two -thirds of demand from emerging markets.
The bank noted that if stablecoins threaten traditional deposits, they also promise cheaper funds and faster payments.
Many emerging market regulators respond with digital currency pilots and improved payment systems. However, the standard chartered warnings that, unless local authorities adapt quickly, “the summer of the stablescoin” could become a long winter for emerging market banks.
Find out more: The Stablecoin market increases on American regulations, with USDC of Circle Gaining Term: JPMorgan
