International financial giant JP Morgan recently warned through a report that the growth rate of the stablecoin market could slow down more than expected. According to JP Morgan, the total global stablecoin issuance is projected to reach around $500 billion by 2028, which significantly differs from industry predictions of $1-2 trillion.
This forecast is based on a study led by JP Morgan's senior strategist Nikolaos Panigirtzoglou. The report indicates that currently 88% of stablecoin demand is concentrated within the cryptocurrency ecosystem, specifically in DeFi, cryptocurrency trading, and idle fund management, with only 6% used for consumer payments. JP Morgan concluded that "expectations of stablecoins rapidly spreading as a popular payment method are overly optimistic".
Additionally, the report pointed out that at the current stage, stablecoins lack real returns as an alternative to bank deposits or money market funds, and the procedural friction in converting between cryptocurrencies and fiat currencies is too significant. JP Morgan also drew a line that comparing with centralized app cases like China's digital yuan (e-CNY), Alipay, or WeChat Pay is not realistic.
Meanwhile, Standard Chartered presented a contrasting outlook. They noted the potential passage of the US stablecoin regulatory bill 'Genius Act', analyzing that regulation could enhance market credibility and expand total supply to $2 trillion. Particularly, they reflected expectations that with legal clarity, institutional investor inflow would surge and usage in the real economy would expand.
In summary, the stablecoin market is growing, but its speed and scope fall short of expectations. Currently, it primarily serves as a means of asset management and liquidity provision within the cryptocurrency ecosystem, with slow transition to a payment method for the general public. JP Morgan predicted a 'steady but moderate growth trend', and this conservative approach might actually be a more feasible scenario in the medium to long term.
Real-time news...Go to TokenPost Telegram
<Copyright ⓒ TokenPost, unauthorized reproduction and redistribution prohibited>
