JPMorgan Chase predicts that the global stablecoin market will reach 500 billion USD by 2028, much lower than the 1-2 trillion USD forecast by some other organizations.
This bank emphasizes that stablecoins primarily serve the needs of the cryptocurrency ecosystem and struggle to replace bank deposits due to lack of yield and barriers to fiat-crypto conversion.
MAIN CONTENT
JPMorgan predicts the stablecoin market will reach 500 billion USD by 2028, lower than the popular forecast.
88% of stablecoin demand comes from cryptocurrency activities, with only 6% used for payments.
Stablecoins struggle to replace bank deposits due to lack of profit and complicated fiat conversion.
What is a stablecoin and how is its development trend expected by 2028?
JPMorgan Chase experts assess that stablecoins are a type of cryptocurrency with a stable value, but the market will grow moderately, reaching around 500 billion USD by 2028.
Stablecoins are designed to reduce price volatility compared to other cryptocurrencies, but according to a JPMorgan report, the growth of stablecoins is limited by their primary use in the crypto ecosystem and the lack of appeal for mass payments.
What are the reasons that make stablecoins difficult to replace traditional bank deposits?
JPMorgan identifies the main factor preventing stablecoins from replacing bank deposits is the lack of interest and the high cost of fiat-crypto conversion, creating many barriers for everyday users.
According to research, 88% of current stablecoin volumes serve transactions and DeFi lending in the cryptocurrency ecosystem, while only 6% are used for actual payments, limiting the role of stablecoins as a daily payment method.
"Stablecoins cannot be compared to central bank digital currencies such as the digital yuan, as their centralized model and application are fundamentally different."
JPMorgan Chase Research, 3/7/2024
What is the impact of legal policies on the stablecoin market?
Standard Chartered experts provide a different forecast from JPMorgan, stating that if the GENIUS Act (U.S.) is passed, the supply of stablecoins could explode to 2 trillion USD by 2028.
Nevertheless, JPMorgan still believes that the growth of stablecoins will be moderate, mainly due to demand in cryptocurrency rather than widespread adoption in global mass payments.
"We expect stablecoins to maintain a stable growth rate based on crypto activity, rather than becoming a popular payment method."
James Dimon – CEO of JPMorgan Chase, statement 2024
Comparison of JPMorgan Chase and Standard Chartered's forecasts for stablecoins
Criteria JPMorgan Chase Standard Chartered Forecast for stablecoin market size in 2028 500 billion USD 2 trillion USD (if the GENIUS Act is passed) Main growth driver Demand in cryptocurrency activities (trade, DeFi) Legal support leading to explosive growth Payment role Only accounts for about 6% of stablecoin usage Expansion potential if the law supports Major challenge Lack of yield, complex fiat-crypto conversion Dependence on legal policy in the United States
Frequently Asked Questions
What is a stablecoin? A stablecoin is a cryptocurrency with a stable value, often pegged to fiat assets to reduce volatility. Why can't stablecoins replace bank deposits? Due to the lack of profit and barriers in converting fiat to crypto, stablecoins find it difficult to replace bank deposits. Who uses stablecoins the most? Most stablecoins are used by investors and participants in the cryptocurrency ecosystem. How is the stablecoin market expected to grow? According to JPMorgan, the stablecoin market will grow moderately and reach around 500 billion USD by 2028. How does the law affect stablecoins? Legal policies, especially in the United States, can either promote or limit the growth of stablecoins.
Source: https://tintucbitcoin.com/stablecoin-du-kien-dat-500-ty-usd/
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