JPMorgan: The Popularity of Stablecoins is Expected to Boost Dollar Purchases

[J.P. Morgan: The Popularity of Stablecoins is Expected to Boost Dollar Purchases] J.P. Morgan stated that the global adoption of stablecoins could drive trillions of dollars into the U.S. dollar in the coming years, even though there are significant discrepancies in market estimates of potential demand for this digital asset. "The popularity of stablecoins is less likely to accelerate de-dollarization and more likely to strengthen the dollar's position in the global financial system," the J.P. Morgan team, including Kunj Padh, Meera Chandan, and Octavia Popescu, stated in a report on Tuesday. There is a significant disparity in the estimates of the final scale of the stablecoin market among strategists from various banks, and this is also true within JPMorgan. An emerging markets equity strategy team estimates that this market will eventually expand to around $2 trillion. Meanwhile, the bank's U.S. interest rate strategists are more cautious, estimating the scale to be about $500 billion. Based on the high end of the aforementioned range, JPMorgan's foreign exchange strategists expect that by 2027, approximately $1.4 trillion in additional dollar demand will support the growth of the stablecoin market. This figure is large, but still far below the $8.6 trillion daily trading volume of dollar currency pairs as per the latest statistics from the Bank for International Settlements.