S&P Global: Stablecoin Adoption in Emerging Markets Could Reach 20% of Bank Deposits

According to a ChainCatcher report, S&P Global Ratings stated that stablecoins may account for up to 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 stablecoin adoption is driven by three main factors: depreciation pressure on local currencies, demand for cross-border remittances, and widespread use of digital assets. In terms of importance, the motivations for adoption include wealth preservation, remittances and international trade, and 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, especially in countries where local currency purchasing power is declining. In January of this year, data from blockchain analytics firm Artemis showed that, in terms of geographic distribution, India and Argentina are true global outliers, with USDC accounting for 47.4% and 46.6% of stablecoin usage in these two countries, respectively.