Escape High-Inflation Currencies with Stablecoins

Summary:

The usage of stablecoins, such as tether (USDT) and USD Coin (USDC), has shown a low correlation with crypto exchange volumes, indicating that these coins are likely being used for non-speculative purposes. Brevan Howard Digital predicts that the stablecoin market will grow to trillions of dollars in supply and hundreds of trillions of dollars in transaction value. They believe stablecoins will provide financial services to the unbanked, offer an escape from high-inflation currencies, and drive innovation. Paypal’s launch of its own stablecoin, PayPal USD (PYUSD), highlights the potential in stablecoins and could disrupt global financial services. Stablecoins settled over $11 trillion on-chain in 2022, surpassing the payment volume of PayPal and reaching a significant portion of ACH and Fedwire volumes. Over 25 million blockchain addresses hold stablecoins, demonstrating potential for global financial services.

Main Key Points:

– Stablecoin usage shows a low correlation with crypto exchange volumes, suggesting non-speculative use.
– The stablecoin market is expected to grow to trillions of dollars in supply and hundreds of trillions of dollars in transaction value.
– Stablecoins will provide financial services to the unbanked and underbanked and offer an alternative to high-inflation currencies.
– Paypal’s launch of its own stablecoin highlights the potential in stablecoins and could disrupt global financial services.
– Stablecoins settled over $11 trillion on-chain in 2022, surpassing PayPal’s payment volume and reaching a significant portion of ACH and Fedwire volumes.

Hot Take:

Stablecoins have the potential to revolutionize global financial services by providing access to the unbanked, offering protection against inflation, and driving innovation. The significant usage and transaction volumes of stablecoins indicate their growing importance in the crypto market. The launch of Paypal’s stablecoin further validates their potential and could disrupt traditional financial services. As stablecoins continue to grow, they may reshape the financial landscape and provide more inclusive and accessible options for individuals worldwide.