Citi Revised Its Major Prediction Regarding Cryptocurrencies

Citi predicts that the stablecoin market will make a big splash in the next five years.

According to the bank's new report, stablecoin issuance could reach $1.9 trillion by 2030. The previous estimate was $1.6 trillion. In an optimistic scenario, that figure could reach as much as $4 trillion.

The report, authored by Ronit Ghose, Global Head of Future Finance at Citi Institute, and Ryan Rugg, Global Head of Digital Assets at Citi Services, described stablecoins as “the ChatGPT moment in institutional blockchain adoption.”

The report estimates that the $1.9 trillion stablecoin issuance could support approximately $100 trillion in annual transactions. However, it notes that this amount is still small compared to the $5 trillion to $10 trillion that major banks transfer every day.

Citi argued that stablecoins “help us reimagine, rather than disrupt,” the current system, but also noted that these tools cannot provide solutions in every area. It noted that many countries already use low-cost instant payment systems, particularly for local payments, and that cross-border transactions remain the main problem.