Rise of Stablecoins in Emerging Markets: Could Reach 20% of Bank Deposits

Stablecoins Show Strong Potential in Emerging Markets

A recent report from S&P Global reveals that stablecoins in certain emerging market countries could reach up to 20% of bank deposits. The study analyzed the adoption of dollar-pegged assets across 45 emerging economies.

The main drivers of stablecoin adoption include currency devaluation pressure, cross-border remittance needs, and the growing popularity of digital assets. Among these, wealth preservation, international money transfers, and trade stand out as the key motivators.

High-Inflation Nations Lead the Way

Countries experiencing high inflation show the greatest potential for stablecoin adoption. In the most extreme scenarios, stablecoins could represent 10–20% of traditional bank deposits in the top 15 countries with the strongest demand for asset preservation.

India and Argentina Stand Out

Data from blockchain analytics firm Artemis in January showed that India and Argentina are global outliers in stablecoin usage, with USDC accounting for 47.4% and 46.6% of stablecoin activity, respectively.