S&P Global Ratings has projected that stablecoins could account for up to 20% of bank deposits in certain emerging market countries. This potential growth is driven by factors such as local currency depreciation, demand for cross-border remittances, and the increasing use of digital assets. The report highlights that countries with high inflation are particularly poised for stablecoin adoption, as these digital currencies offer a means of wealth preservation and facilitate international trade.
In a scenario where demand for wealth preservation is strongest, stablecoins could represent 10-20% of bank deposits in the top 15 countries. Notably, India and Argentina are leading in stablecoin usage, with USDC making up 47.4% and 46.6% of stablecoin transactions, respectively, according to data from blockchain analytics firm Artemis.
Stablecoin Adoption in Emerging Markets Could Hit 20% of Bank Deposits
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