Despite a more than 70% decline in the value of cryptocurrencies in 2022, stablecoin use has risen significantly. The total amount they resolved in 2021, according to the data from CoinMetrics, was a little over $6 trillion, and the total amount determined in 2022 may exceed $8 trillion.
On December 21, Brevan Howard Digital’s co-head of the venture, Peter Johnson, compared stablecoin solutions to those of popular credit cards.
He pointed out that stablecoin settlements had already eclipsed American Express and MasterCard. Furthermore, he forecasted that on-chain stablecoin rates would overtake Visa’s in 2019. Stablecoin volumes on-chain will overtake Visa in 2023.
Peter Johnson twitted:
1/ Last year, stablecoins settled >$7tn on-chain. Current run-rate is ~$9tn/yr. This is significantly more than Mastercard (~$2.2tn), Amex (~$1tn), and Discover (<$200bn). In 2023, on-chain stablecoin volumes will surpass the largest card network, Visa, which processes ~$12tn/yr.
The increase in resolution volumes for stablecoins is even more remarkable, and that volume will soar once they are regulated and accepted as payment methods.
Approximately 16.5% of the total crypto market capitalization is presently made up of stablecoins. The total value of them all, according to CoinGecko, is $140 billion.
With a market share of 47% and 66.3 billion USDT in circulation, Tether is still the market leader. A circle is in second place with a market share of 31%, with UDSC sales of 44.3 billion. Together, the pair accounts for around 80% of the stablecoin market.. But this year, as the bear market has deepened, both have witnessed a decline in their circulating supply.
Act Regarding Stablecoins Presented
Republican Senator Pat Toomey, a supporter of cryptocurrencies, has put forth a stablecoin trust bill as his last act before leaving office. On December 21st, he stated:
I hope this framework lays the groundwork for my colleagues to pass legislation next year safeguarding customer funds without inhibiting innovation.
The new proposal would grant licensed organizations, including banks and money transmitters, permission to issue them. Additionally, it wants to eliminate the onerous reporting requirements and designate stablecoins as non-securities.
Related Reading | Indian Central Bank Governor Issues Stern Warning Against Private Cryptocurrencies
Moreover, it is far more beneficial than Elizabeth Warren’s proposed regulatory reforms. Aiming to criminalize all financial privacy, the bill mandates that nodes and validators register as financial institutions. According to Senator Sherrod Brown, the entire asset class should be outlawed in the US, taking the argument one step further.
Comments (No)