Regulatory changes could be the catalyst to trigger a significant adoption of stablescoins and blockchain technology in 2025, according to the giant of Citigroup investment banks.
“2025 has the potential to be the moment of the blockchain” chatgpt “for adoption in the financial and public sector, motivated by the regulatory change,” said a team of Citigroup financial analysts in a report on April 23.
A combination of growing regulatory support and adoption by financial institutions has prepared the way for the stable market capitalization to reach 3.7 billions of dollars by 2030, or in a basic case, 1.6 billion of dollars.
“The main catalyst for their greatest acceptance can be regulatory clarity in the United States, which could allow greater integration of stablecoins specifically, and blockchain more widely, in the existing financial system,” said Citi in his report.
“The rear winds of regulatory support and the increased integration of digital assets in outgoing financial institutions open the ground for increased use of stablecoins.”
In the tables of the American president’s cryptocurrency administration, assuming power earlier this year, legislators weigh stable legislation, such as engineering law, which seeks to regulate American stables, ensuring their legal use for payments.
According to the report, an American regulatory framework for Stablecoin would also support the demand for risk-free assets in dollars inside and outside the United States, the report.
“Stablecoin transmitters will have to buy us treasury bills or low-risk assets, against each stablecoin as a measure of the safe underlying guarantee,” said Citi.
“Stablecoin issuers could have more American treasury bills by 2030 than any single jurisdiction today.”
The United States will continue to dominate Stablecoins
In the future, Citi predicts that Stablecoin’s offer will remain labeled in US dollars, non -American countries promoting the national currency or a digital currency of the Central Bank.
In April, the market capitalization of the stables crossed $ 230 billion, an increase of 54% since last year, with TETHER (USDT) and USDC (USDC) dominating 90% of the market.
“Although the domination of the dollar can evolve over time, the euro or other currencies promoted by national regulations, the stablecoins can be considered by many non -American decision -makers as an instrument of hegemony of a dollar,” said Citi.
“Geopolitics remains fluid. If the world continues to derive in a multipolar system, it is likely that political decision -makers in China and Europe will be eager to promote digital currencies of the Central Bank (CBDC) or the stablecoins emitted in their own currency. ”
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However, there are still challenges to come for the market. The market capitalization of the stables could pay around $ 500 billion if “the adoption and integration challenges persist”.
The clearance was also reported as a potential problem, with 1,900 instances in 2023, according to Citi, including the USDC Depeg adult following the collapse of the Silicon Valley Bank.
“A major emergence event would probably reduce the liquidity of the cryptography market, would trigger automated liquidations, alter the capacity of trading platforms to respond to buyouts and potentially have wider contagion effects for the financial system,” said the company.
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