Standard Chartered’s Vision for Cryptocurrencies by 2028
Standard Chartered has made an exciting prediction concerning the adoption rate of cryptocurrencies by 2028. The globally renowned bank suggests that soaring demand for stablecoins could lead to a $1 trillion transfer from banks to stablecoins, representing a significant growth opportunity for the broader cryptocurrency market by 2028.
The bank’s Global Research Department revealed in a recent report the expected growth from $173 billion to $1.22 trillion within three years. This growth projection is grounded in how capital is expected to flow out of traditional financial markets into the crypto sphere.
Interestingly, the regulation of stablecoins by the US through initiatives like GENIUS and major banks’ eagerness to launch their own stablecoins substantiate these numbers. In economically fragile countries outside the US, there is notable interest in foreign currencies like the dollar. This trend explains why stablecoins are spreading faster in these regions. This anticipation of growth drives the bank’s optimistic stance on the future of cryptocurrencies.
Stablecoins and Emerging Economies
Standard Chartered emphasizes that the concept of a 1:1 dollar-backed stablecoin, accessible 24/7, is finding substantial appeal in emerging markets. Over 66% of the current stablecoin supply resides in savings wallets within developing markets. Although this poses challenges for countries in need of foreign exchange due to high inflation and weak reserves, it benefits the widespread use of the US dollar.
Venezuela stands as a notable example, with people using stablecoins as a widespread store of value amid annual inflation rates soaring up to 300%. Numerous businesses are pricing their goods and services in USDT. Despite Venezuela ranking 13th in Chainalysis’s 2024 crypto adoption report, the country witnessed a 110% increase in cryptocurrency utilization within just one year.