The sharp increase in the use of Stablecoin could drain up to $ 1 billion of emerging market banks in the next three years, since savers seek the safety and liquidity of digital assets with dollars in dollars, said Standard Chartered in a Monday report.
Stablecoins is giving homes and companies in developing economies an alternative to local banks, accelerating a change of postfinancial crisis of central banking functions in the non -banking sector, wrote the analysts Geoff Kendrick and Madhur Jha.
The stable are cryptocurrencies whose value is linked to another asset, such as the US dollar or gold. They play an important role in cryptocurrency markets, providing, among other things, a payment infrastructure, and are also used to transfer money internationally.
The adoption of these cryptocurrencies has been stronger in countries with weak currencies and high inflation, including Egypt, Pakistan, Bangladesh and Sri Lanka, where deposit flight risks are acute, analysts wrote.
Even without offering yields, now forbidden under the United States genius law, Stablecoins attracts users who prioritize capital preservation, according to the report.
Standard Chartered forecasts The Global Stablecoin market will reach $ 2 billion by 2028, with approximately two thirds of demand from emerging markets.
The Bank said that while Stablecoins threaten traditional deposits, they also promise cheaper remittances and faster payments.
Many emerging market regulators are responding with improved digital coins pilots and improved payment systems. Even so, standard, warns the standard that, unless local authorities adapt rapidly, Stablecoin’s summer “could become a long winter for emerging market banks.
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