Standard Chartered: Over $100 billion will flow into stablecoins from emerging market banks before 2028.

Standard Chartered ( reported on 10/6 that over 1 trillion dollars may flow into stablecoins from emerging market banks within the next three years.

Over 1 trillion dollars flowed into stablecoins before 2028.

The report indicates that as payment systems and banking services are increasingly replaced by non-bank institutions, the adoption of stablecoins is accelerating. Among them, many users in emerging markets directly use stablecoins as a means to store US dollars, instead of keeping their money in local bank accounts.

According to Standard Chartered, the amount saved in stablecoins in emerging markets is currently estimated at about $173 billion, and is expected to surge to $1.22 trillion by 2028. In other words, nearly $1 trillion may flow into stablecoins over the next three years.

Emerging markets become the biggest variable, with nearly 70% of stablecoins already in these countries.

Standard Chartered pointed out that the most affected will be emerging markets, and the reason is simple: these countries find it difficult to access US dollars and also face issues such as foreign exchange restrictions and high inflation. Stablecoins allow the public to access US dollar assets anytime through mobile apps, which is safer than keeping money in local banks.

Standard Chartered stated that since the United States passed the stablecoin legislation, the "GENIUS Act", market trust in stablecoins has further increased. However, Standard Chartered also warned that this could lead to a significant outflow of bank deposits, especially in countries where inflation is severe, foreign exchange is insufficient, and there is a reliance on remittances. Standard Chartered estimates that currently, about 70% of the global stablecoin supply is distributed in "digital wallets" in emerging markets.

Using Venezuela as an example, explain how stablecoins can replace the local fiat currency.

Standard Chartered uses Venezuela as an example to illustrate how stablecoins can replace traditional fiat currencies in a high-inflation environment. Venezuela's annual inflation rate ranges from 200% to 300%, and the country's fiat currency, the Bolivar )Bolivar(, has significantly depreciated.

In recent years, local residents have generally turned to using stablecoins like USDT as a means of payment and saving, with even small shops, retail chains, and events accepting cryptocurrency payments. According to the Chainalysis 2024 report, Venezuela's cryptocurrency usage rate has increased by 110% year-on-year, ranking 13th in the global cryptocurrency adoption.

In 2023, Venezuela saw approximately $5.4 billion in cross-border remittance inflows, of which about 9% were completed through cryptocurrencies.

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The use of stablecoins has surged in Latin American countries such as Argentina and Brazil.

Aside from Venezuela, Standard Chartered pointed out that the inflation issues in Argentina and Brazil are also encouraging people to shift their savings to USDC, USDT, and other dollar stablecoins, and many local businesses have started to make payments in stablecoins.

According to a report by Fireblocks, stablecoin trading between Brazil and Argentina accounts for 60% of the total cryptocurrency trading volume. This shows that in an environment of inflationary pressure and currency depreciation, stablecoins are gradually replacing traditional bank accounts and cash savings, becoming an alternative "digital dollar" for people in emerging markets.

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This article Standard Chartered: Over 100 million USD will flow from emerging market banks into stablecoins before 2028, first appeared in Chain News ABMedia.