Stablecoins are ready to displace US currency assets in the next five years

Over the next five years, stablecoins will most likely begin to displace some of the US currency assets both inside and outside the country. This conclusion is presented in the Citi Future Finance report. According to the forecast, the stablecoin sector can take a leading position in the crypto industry due to the fact that regulators are becoming more loyal and facilitating the integration of fixed-value digital tokens into the traditional economy.

Already, stablecoins, whose value is mainly pegged to the dollar, are used not only in crypto trading, but also for payments and transfers. In the coming years, they will have to take their place in short-term liquidity and partially replace the US foreign exchange reserves in the domestic and international markets. The possibility of issuing profitable stablecoins will allow them to become an alternative to term deposits and retail money funds.

The integration of stablecoins will allow them to be used for settlements with tokenized assets and for payments between companies of different scales. Thanks to these tokens, users around the world will be able to store dollars or euros quickly and at minimal cost, which strengthens their status as the world's leading currencies.