According to a report by JPMorgan, the stablecoin market is projected to reach $500 billion by 2028, falling short of more optimistic forecasts of $1 trillion to $2 trillion. The report, led by strategist Nikolaos Panigirtzoglou, emphasizes that the current demand for stablecoins is primarily driven by crypto-native activities, with only 6% attributed to payment uses. The analysis suggests that even with the expected growth in stablecoin adoption, the impact on the overall market size would be minimal. JPMorgan is skeptical about a significant transition from traditional bank deposits to stablecoins, citing lack of yield and the complexities of converting fiat to crypto. The report contrasts the decentralized nature of stablecoins with centralized digital payment systems like China's e-CNY. Some institutions, however, are more optimistic; for instance, Standard Chartered predicts a potential surge in stablecoin supply influenced by new regulatory legislation in the U.S.

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