KUALA LUMPUR, July 4 (Bernama) -- The value of payment transactions powered by stablecoins will exceed US$187 billion globally by 2028, up from US$53 billion in 2023, according to a new study from Juniper Research. (US$1=RM4.66)
The study found that stablecoins are making rapid progress in the cross-border market in particular, with them representing a key way to bypass slow, expensive and difficult-to-track existing cross‑border payment rails.
According to Juniper Research in a statement, stablecoins are cryptocurrencies that have their value pegged to a fiat currency or commodity, removing the volatility inherent to a typical cryptocurrency.
By 2028, the value of cross-border stablecoin payments will represent almost 73 per cent of total stablecoin payments transaction values globally, showing the dominance of cross-border use cases.
Stablecoins can be highly effective, as they remove stages in the cross-border process, increase speed of transactions and settlements, as well as greatly improve traceability.
However, the research identified the main obstacle for further growth as being acceptance, with stablecoin roll-outs needing new networks to be built and scaled.
Another challenge to stablecoin growth is the role of Central Bank Digital Currencies (CBDCs), digital coins issued by a central bank, which are pegged to the country’s fiat currency.
While CBDCs are at an early stage of development, they too have strong potential for cross-border. The advantage CBDCs have is their central bank backing, meaning roll-outs should be at a faster pace.
Given the size of the cross-border space, and the very nascent stage of CBDC development, stablecoins have strong prospects for growth alongside CBDCs.
-- BERNAMA
No comments:
Post a Comment