JPMorgan expects global demand for dollars to grow by $1.4 trillion

JPMorgan predicts that the growing popularity of stablecoins, which are mostly pegged to the US dollar, will create additional demand for this currency in the amount of approximately $1.4 trillion. According to experts, the increased use of stablecoins could reverse the trend of de-dollarization and strengthen the dollar's position in the global economy.

Source — Minfin

It is worth noting that the current stablecoin market is worth approximately $260 billion, with forecasts reaching $2 trillion by 2027. At the same time, according to the data presented, about 99% of all stablecoins are linked to the US currency. However, experts advise caution regarding this optimistic scenario, as it is unknown whether such forecasts will come to fruition.

Now, if these predictions come true, it could lead to a significant influx of capital into dollar-denominated assets. Thus, changes in the stablecoin market have a potential impact not only on the financial industry but also on the global economy, creating new challenges and opportunities for investors and regulators.