Citi: Stablecoins May Drive the Next Growth Phase of Cryptocurrency

ChainCatcher news, according to CoinDesk, Citibank has released a report indicating that stablecoins may drive the next growth phase of cryptocurrencies.

The bank's analysts compared stablecoins to the rise of money market funds in the 1980s, noting that the main driving force behind stablecoin adoption lies in their role as a "store of value" in emerging markets facing inflation or weak institutions. This could further stimulate demand for dollar assets, but may also trigger policy responses aimed at limiting dollarization.