Growth Engine Stablecoins: On the Way to a Financial Revolution?

The latest analysis from Citi Institute predicts tremendous growth in the stablecoin sector in the coming years. According to Ronit Ghose, the global head of the Future of Finance, and Ryan Rugg, the head of digital assets at Citi Services, the issuance of stablecoins could rise to as much as USD 1.9 trillion by 2030. In the best-case scenario, the market could even surpass the impressive mark of USD 4 trillion. These optimistic prospects underline the increasing significance of stablecoins, which are already finding more applications in the crypto trading landscape as well as in e-commerce. Interestingly, the current situation is compared to the early days of the dotcom era when the internet revolution was still viewed skeptically. Stablecoins, as cryptocurrencies pegged to traditional currencies like the US dollar, are gaining popularity, especially for international households that need easier access to USD. This year alone, the market size has grown from USD 200 billion to USD 280 billion, confirming the breakthrough of blockchain technology in the settlement of transactions by large financial institutions. However, Citi remains cautious in its assessment, emphasizing that stablecoins cannot solve all problems. Domestic payment systems in many countries already operate in real-time at low costs. Cross-border transactions remain problematic, although there are advancements in reducing fees and accelerating settlements. This year has already seen many developments in the stablecoin sector. Major companies like PayPal have expanded their offerings, while retail giants such as Walmart and Amazon are reportedly considering their own stablecoins. At the same time, regulatory authorities worldwide are striving for clearer frameworks for the issuance and oversight of stablecoins. However, the industry also faces challenges, as concerns about reserves and broad acceptance of crypto remain. Prominent proponents of cryptocurrencies like President Trump and Eric Trump contribute to the ongoing discussion and heighten general attention to crypto applications.