Standard Chartered has just released a surprising forecast regarding the future of stablecoins. In its report, the global investment bank estimates that the stablecoin market will grow rapidly from around $230 billion today to $2 trillion by the end of 2028. This surge will be primarily driven by new regulations coming from the United States.
Genius Act: The Main Catalyst for Stablecoin Growth
One of the key drivers behind this growth is the Genius Act, a US bill that is expected to be passed soon. This regulation is believed to provide legal clarity and strengthen the role of stablecoins in the global financial system.
According to Standard Chartered, the regulation will be a game changer because it could:
- Boost the stablecoin supply by nearly 10 times, as institutional confidence in stable digital assets increases.
- Redirect funds into US government bonds (Treasury Bills) worth up to $1.6 trillion, since many stablecoins like USDT and USDC store their reserves in such instruments.
- Reinforce the dominance of the US dollar globally, as most stablecoins are pegged to the USD.
Stablecoins and the Future of the Digital Economy
Standard Chartered observes that the adoption of stablecoins will likely mirror the approach taken by USDT and USDC, which primarily hold their reserves in Treasury Bills. This strategy helps maintain price stability and enhances investor confidence.
As regulatory clarity improves and adoption continues to grow, stablecoins have the potential to become a fundamental component of the digital economy in the near future.
Conclusion
If this prediction comes true, stablecoins will not only serve as stable digital exchange tools but also play a significant role in strengthening the global financial system, especially the position of the US dollar. Could this be the right time to start considering the potential of stablecoins in your investment portfolio?
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