JPMorgan Chase anticipates that the global adoption of stablecoins will significantly boost demand for the US dollar, potentially channeling trillions into the dollar system over the coming years. Contrary to concerns about de-dollarization, the bank suggests that stablecoins could reinforce the dollar's dominance. Estimates on the stablecoin market's future size vary, with JPMorgan's emerging market equity team predicting a $2 trillion expansion, while US interest rate strategists foresee a more conservative $500 billion. Based on these projections, foreign exchange strategists estimate an additional $1.4 trillion in US dollar demand by 2027, a notable figure despite being dwarfed by the $8.6 trillion daily trading volume of US dollar pairs.
JPMorgan: Stablecoin Growth to Bolster US Dollar Demand
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