Bloomberg Intelligence analyst suggested that in the very near future, stablecoins will be more popular than bitcoin. It remains only to resolve the issue of regulation.
Jamie Coutts believes that despite the lack of clear regulations for stable cryptocurrencies in the US, they are in for a real boom. The analyst recalled that already in 2022, there was a significant growth in the stablecoin market: the total volume of payments in the first-level blockchains reached almost $6.9 trillion. However, since the beginning of 2023, this figure has decreased by 80%.
Coutts suggested that in the next three to five years, depending on market factors, the widespread adoption of stablecoins will happen much faster – compared to bitcoin. Reason: More and more major financial institutions are showing interest in stablecoins and are even trying to follow the example of PayPal, which recently launched its own dollar-pegged token, PYUSD.
In 2021, the Visa payment operator introduced a solution for the interaction of stablecoins, digital currencies of the Central Bank and cryptocurrencies, and in March 2023, the Mastercard payment system introduced a cryptocurrency card supporting Stables stablecoins. Recently, one of the largest e-commerce platforms, Shopify, added support for the decentralized payment protocol Solana Pay, which allowed customers to pay with stablecoins.
According to a Bloomberg analyst, payment companies that ignore this type of crypto asset are missing out on many opportunities, including increasing the speed of payments. Still, the use of stablecoins for settlements may be limited by the capabilities of blockchains, since open networks are not able to provide the same scalability as Visa or Mastercard, Coutts noted. Solutions for scaling the Ethereum network of the second level – Arbitrum and Optimism, as well as the Base blockchain, which can make transactions cheaper due to the introduction of proto-dunksharding, known as EIP-4844, can become a way out of the situation.
Earlier, Jamie Cutts said that the launch of the PayPal stablecoin could significantly affect the entire Ethereum ecosystem, since PayPal has about 435 million active accounts.
Source: Cryptocurrency
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