Standard Chartered Analysts Predict Stablecoins Will Represent 10 Percent of US Economy in the Future!

Analysts at Standard Chartered and Zodia Markets predict that stablecoin adoption will see significant growth, potentially representing 10% of US M2 transactions in the future. Standard Chartered and Zodia Markets Estimate Stablecoin Usage Could Reach 10% of US M2 and FX Trading “Currently, stablecoins are only equivalent to 1% of US M2 transactions and 1% of forex transactions, but as the sector becomes more legitimized, a move towards 10% on each measure is possible,” Geoff Kendrick, Global Head of Digital Assets Research at Standard Chartered, and Nick Philpott, Co-Founder of Zodia Markets, wrote in a report. M2 money supply is a key measure of the total money supply in an economy, which includes all the money in circulation as well as other assets that can be easily converted into cash. According to analysts, the primary driver of this growth will be the regulation of stablecoins in the U.S. During the Biden administration, three major bills were introduced to create regulatory frameworks for banks to issue stablecoins, but little progress has been made. However, Kendrick and Philpott believe the new Trump administration has the potential to make more significant progress on stablecoin regulation, which could accelerate the development of the sector. The Standard Chartered report noted that stablecoins are increasingly being used beyond just trade collateral, with increasing applications in cross-border payments, payroll, trade reconciliation and remittances. Citing a survey conducted by YouGov, the report noted that stablecoins are gaining traction in emerging markets, particularly Brazil, Turkey, Nigeria, India, and Indonesia. *This is not investment advice. Continue Reading: Standard Chartered Analysts Predict Stablecoins Will Represent 10 Percent of US Economy in the Future!