Stablecoins and the Future of Money

Ronit Ghose, Head of Future of Finance at Cit Institute, talks to Catherine Gu, Head of Institutional Client Solutions at Visa on how institutional adoption of stablecoins is still in its very early stages. While interest is growing, particularly since the beginning of 2025, large-scale adoption and product development haven't materialized yet. This is partly due to the nascent regulatory landscape in the US and Europe.

Key Takeaways: 

• Current State: Institutional adoption of stablecoins is still in its very early stages, estimated at 0.5 on a scale of 0 to 10. Interest spans various sectors, Banks, exploring bringing traditional money (M1, M2) on-chain. Asset managers, investigating tokenization of real-world assets (securities, bonds, money market funds). Stablecoins are crucial for liquidity in this area and Merchants, where adoption is slower due to the costs and resources needed for infrastructure upgrades. Solutions like linking Visa credentials to crypto wallets are bridging the gap.
• Global Interest and Use Cases: Stablecoins are particularly attractive in emerging economies, offering a dollar-denominated store of value and facilitating efficient, cost-effective global transactions for businesses and merchants. Domestic use cases within the US are less prominent.
• The Role of Banks: Banks play a vital role in providing trust, scale, and ease of access for users. Integrating stablecoins into existing banking experiences could drive mass adoption. The attractiveness of stablecoins varies depending on the region and the specific needs of the local economy. Not all countries may require stablecoin integration.
• Stablecoins vs. CBDCs vs. Deposit Tokens: Whether CBDCs are superior to stablecoins depends on the specific use case and country. The dominance of dollar-denominated stablecoins highlights the global demand for dollars. The reaction of central banks and commercial banks in regions with high stablecoin adoption remains uncertain. Deposit Tokens offer the benefits of on-chain money combined with the security of regulated bank deposits. They are potentially suitable for large-value B2B transactions requiring 24/7 availability and transferability outside closed banking networks.