Stablecoins: The Backbone of the Modern Economy | Blockchain Futurist Conference 2024

Stablecoins currently process over $10 trillion in settlements, with projections showing growth to $3 trillion industry by 2028

Key barriers to stablecoin adoption in Canada include:

• Lack of banking access for crypto companies
• Complex regulatory frameworks
• High onramp/offramp fees (5-7%)
• Limited integration with traditional payment rails

Remittances represent a major use case for stablecoins:

• Traditional services like Western Union charge 20%+ fees
• Stablecoins offer 1-2% fees with instant settlement
• Particularly valuable for underbanked populations

Current stablecoin usage is primarily in:

• DeFi applications
• Cross-border payments
• Trading pairs for other cryptocurrencies

Regulatory recommendations:

• Harmonize regulations across jurisdictions
• Passport established stablecoins rather than create Canada-only solutions
• Balance innovation with consumer protection
• Align with international frameworks (EU, Singapore, Hong Kong)

Infrastructure needs for wider adoption:

• Better integration with traditional banking
• Simplified onramp/offramp processes
• More user-friendly interfaces
• Real-time payment rail connections

Financial inclusion benefits:

• Provides banking alternatives for unbanked/underbanked
• Enables low-cost international transfers
• Offers stable store of value in countries with volatile currencies
• Reduces dependency on traditional banking infrastructure