S&P Global: Some emerging market stablecoins may reach up to 20% of bank deposit sizes

ChainCatcher Message, Standard & Poor’s Global Ratings states that stablecoins may account for 20% of bank deposits in some emerging market countries. The report analyzes the adoption of foreign currency stablecoins ( mainly dollar-pegged assets ) in 45 emerging market countries.

The report points out that stablecoin adoption will be driven by three main factors: local currency depreciation pressures, cross-border remittance needs, and the widespread use of digital assets. In order of importance, adoption motives include wealth preservation, remittances and international trade, as well as enthusiasm for digital assets. S&P Global believes that countries with high inflation show the greatest potential for stablecoin adoption. In the most aggressive scenario, stablecoins could reach 10-20% of bank deposits in the top 15 countries with the strongest wealth preservation needs, especially in countries where local currency purchasing power is declining.

In January this year, blockchain analytics firm Artemis’s data shows that, from a geographic perspective, India and Argentina are true global outliers, with USDC accounting for 47.4% and 46.6% of stablecoin usage in these two countries, respectively.