PANews January 2, 2024 — According to a report by DL News, BlackRock highlighted in its "2026 Global Outlook" that stablecoins will challenge governments' control over fiat currencies. As the adoption of stablecoins surges, there is a risk of a decline in the usage of fiat currencies in emerging markets. Samara Cohen, BlackRock's global market development head, stated, "Stablecoins are no longer niche products; they are becoming a bridge between traditional finance and digital liquidity." It is reported that Standard Chartered Bank in the UK warned in October that the proliferation of stablecoins could lead to a loss of over $1 trillion in deposits from bank accounts in emerging markets. Similar challenges exist in the U.S. banking sector. The landmark stablecoin bill, the "Genius Act," which took effect in July, allows crypto companies to offer yield-like products that traditional banks are prohibited from providing, posing a threat to conventional financial institutions.
BlackRock: Stablecoins No Longer Niche, Pose Challenge to Fiat and Banking
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Summary
BlackRock's 2026 Global Outlook indicates that stablecoins are no longer niche and could challenge fiat currencies and banking systems. Samara Cohen stated that they are bridging traditional finance and digital liquidity. Standard Chartered warned of a $1 trillion deposit loss in emerging markets. The U.S. Stablecoin Act now allows crypto firms to offer yield-like products, disrupting traditional banks. Traders monitoring altcoins may observe shifts as stablecoins grow. Readings from the fear and greed index suggest that market sentiment is moving toward risk-on behavior.
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