S&P Global: The scale of some stablecoins in emerging markets can reach up to 20% of bank deposits

S&P Global Ratings stated that stablecoins could account for 20% of bank deposits in certain emerging market countries. The report analyzed the adoption of foreign currency stablecoins (primarily dollar-pegged assets) in 45 emerging market countries.

The report noted that the adoption of stablecoins will be driven by three main factors: local currency depreciation pressure, cross-border remittance demand, and the widespread use of digital assets. Ranked by importance, the motivations for adoption include wealth protection, remittances and international trade, as well as enthusiasm for digital assets. S&P Global believes that high-inflation countries 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 demand for wealth preservation, particularly in countries where local currency purchasing power is declining.

In January of this year, blockchain analytics firm Artemis reported that, geographically, India and Argentina are true outliers, with USDC accounting for 47.4% and 46.6% of stablecoin usage in these countries, respectively.