Experts Dispute Standard Chartered’s $1 Trillion Stablecoin Outflow Forecast

Standard Chartered's bold prediction of a $1 trillion deposit migration from emerging market banks to stablecoins faces skepticism from industry experts. The bank's research suggests countries like Egypt, Pakistan, Bangladesh, and Sri Lanka could see significant outflows as users seek USD-pegged alternatives to traditional banking.

Counterarguments highlight the rise of local-currency stablecoins such as Nigeria's cNGN and Indonesia's IDRX as natural evolution rather than systemic risk. These sovereign-aligned digital assets are gaining traction as inflation hedges and capital control solutions in developing economies.

Regulatory clarity in markets like Nigeria may accelerate stablecoin adoption without triggering catastrophic bank runs. Dominic Schwenter of Lisk notes these instruments could drive financial innovation rather than displacement, creating hybrid systems where traditional and crypto-native solutions coexist.