Stablecoin Adoption Predicted to Boost Trillions into U.S. Dollar System

According to PANews, JPMorgan has indicated that despite varying forecasts for future digital asset demand, global adoption of stablecoins could channel trillions of dollars into the U.S. dollar system over the coming years. The growth of stablecoins is not expected to accelerate de-dollarization; instead, it may reinforce the dollar's position. Bank strategists have differing opinions on the ultimate size of the stablecoin market, with significant variations even within JPMorgan. An emerging markets equity strategy team anticipates the market could expand to approximately $2 trillion. In contrast, the bank's U.S. rates strategists are more cautious, estimating a market size of around $500 billion. Based on the higher end of this range, JPMorgan's foreign exchange strategists project that by 2027, an additional $1.4 trillion in dollar demand will support the growth of the stablecoin market. Although this figure is substantial, it remains significantly lower than the latest statistics from the Bank for International Settlements, which report an average daily trading volume of $8.6 trillion for dollar currency pairs.