JPMorgan: The popularity of stablecoins is expected to boost dollar buying rather than accelerate de-dollarization

ChainCatcher news, according to Bloomberg, JPMorgan stated that despite significant differences in forecasts for future demand for digital assets, the global adoption of stablecoins in the coming years could drive trillions of dollars into the dollar system; and the growth of stablecoins will not accelerate de-dollarization, but may instead reinforce the dollar's status.

Estimates from various bank strategists regarding the eventual size of the stablecoin market vary widely, even within JPMorgan itself. An emerging markets equity strategy team expects this market to eventually expand to about $2 trillion. The bank's U.S. interest rate strategists are more cautious, estimating the size to be around $500 billion. Based on the upper end of this range, JPMorgan's forex strategists expect that by 2027, approximately $1.4 trillion in additional dollar demand will support the growth of the stablecoin market. This figure is substantial, but still far below the $8.6 trillion daily trading volume of dollar currencies as per the latest statistics from the Bank for International Settlements.