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The Impact of Stablecoins on Global Payment Networks and U.S. Treasury Bond Holdings
AI Summary
Stablecoins have increased in transaction volume, significantly affecting financial systems and suggesting a future dominance in Treasury bond holdings.
According to Odaily, a16z Crypto has published an article titled 'Stablecoins: An Opportunity to Onboard 1+ Million Users', highlighting the significant growth of stablecoins in the last year. The transaction volume of stablecoins has reached $33 trillion, marking a historic record and surpassing PayPal's transaction volume by 20 times and Visa's by three times. Stablecoins have been integrated into the vast global payment networks that have existed for decades.
The rise of stablecoins has resulted in $128 billion in U.S. Treasury bonds being held by stablecoin entities, placing them among the top 20 holders of U.S. Treasury bonds, surpassing countries like Saudi Arabia, South Korea, the UAE, and Germany. Citibank recently predicted that by 2030, stablecoin holdings in U.S. Treasury bonds could reach $3.7 trillion, making them the largest holders on this list.
Stablecoins have long faced criticism for being primarily used to settle speculative cryptocurrency trades. However, recent data suggests that their use extends beyond this, indicating a broader integration into financial systems.
