S&P Global Ratings says stablecoins, primarily those pegged to the U.S. dollar, could gain a much larger share in emerging market economies, with holdings across 45 countries potentially climbing to $730 billion, up from a current value of about $70 billion.
The report, published this week, says stablecoins’ role in the financial system is “growing in lockstep with their rapidly expanding issuance.”
Even so, analysts note that stablecoin adoption at the upper end of their estimates “would not be significant enough to have a material impact on banks’ role in intermediation or the effectiveness of monetary policy.”
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