The total market capitalization of stablecoins has reached a historic high of $323 billion, exceeding the official currency reserves of 95 countries.
Source: CoinDesk.Countries whose international reserves fall below the capitalization of the stablecoin sector include the United Kingdom, Canada, the UAE, Poland, Thailand, and Mexico.
Only 14 countries, including China, Japan, Russia, and India, have currency reserves that exceed the market value of stablecoins. For comparison, India's reserves stand at $688.9 billion, while Brazil's are at $358.2 billion.
The sector has accelerated in recent months, with valuations at $312 billion in March and $317 billion in April.
Dollar-pegged stablecoins like USDT and USDC account for 99% of the market. Despite the overall volumes, euro-denominated tokens make up only 0.3%.
The Bank for International Settlements (BIS) noted that the use of these assets is gradually extending beyond crypto trading. Stablecoins are increasingly being utilized in cross-border payments, particularly in regions with high inflation and currency volatility.
However, BIS experts warned that the ease of capital movement through blockchain poses risks for emerging markets. They believe this could accelerate liquidity outflows and lead to the devaluation of national currencies.
In May, the European Central Bank cautioned about the risks associated with issuing euro stablecoins, stating that they could reduce bank lending and complicate interest rate control.