Stablecoins is playing an increasingly important role both in cryptographic markets and traditional finances, according to a Friday report by Wall Street Citigroup.
As the use of Stablecoin grows, so makes its demand for the United States Treasury bonds in the short term, although the replacement of money market funds can limit the net effect, according to the report.
The legislation under consideration in Congress could further strengthen this tendency to demand that the reserves remain in government debt on a short date, said the bank.
Citi said that the domain of the US dollar in the emission of Stablecoin reflects its status as the global reserve currency, instead of promoting it.
The stable backed by dollar such as the USDT is still dominant, fueled by its central role in the cryptography trade and blockchain -based payments, the bank said.
Meanwhile, the new players such as PayPal (PyPL) and Visa (V) are also experimenting with stablecoin use cases, Citi said.
The potential market is significant, $ 1.6– $ 3.7 billion by 2030, according to CITI, but regulatory restrictions such as performance restrictions can limit growth.
Even so, Stablecoin’s issuance trends could offer information on the evolving global monetary order, the report added.
Read more: The approval of the US Stablecoin bill
