Citi's $1.9 Trillion Stablecoin Prediction for 2030

U.S.-based financial giant Citi has made an important prediction regarding the stablecoin market. Following the implementation of the GENIUS Act in July, they forecast that the market value of stablecoins will reach $1.9 trillion by 2030. The report emphasizes that the share of stablecoins in the current crypto ecosystem continues to grow, constituting between 5% and 10% of the total market value.

Citi analysts believe that the growth of stablecoins will continue in parallel with the expansion of the digital asset market. Stablecoins are often defined as cryptocurrencies pegged to assets such as the U.S. dollar or gold, playing a significant role in international money transfers and crypto payments. The report also addressed leading stablecoins such as Tether (USDT) and Circle (USDC).

The bank argues that stablecoins will have a limited impact on the banking system. It is noted that rising funding costs and changing credit appetites could create effects similar to the rise of money market funds in the 1980s; however, this is not expected to fundamentally disrupt the banking system. Additionally, there has been a noticeable increase in stablecoin activities on Ethereum, though it is suggested that this dominance may decline in the long term.

In developing countries with high inflation or weak currency structures, the use of stablecoins as a "store of value" is increasing. This could raise demand for dollars and pave the way for new regulatory moves. Citi indicates that payments still remain a niche use case, and transactions predominantly take place between small amounts. Furthermore, it is reported that the dominance of the dollar in the market continues, although euro-based stablecoins are gradually gaining value.

Finally, the new regulations in Hong Kong represent an important point regarding how regulations outside the U.S. may shape the market's future effects. Investors are in a period where they should closely monitor the development of stablecoins and their market impacts.