Latest news with #RonitGhose
Int'l Business Times
16-07-2025
- Business
- Int'l Business Times
The US Dollar Just Got an Upgrade—and It's Called A Stablecoin
Until recently, stablecoins were the plumbing of crypto markets—useful, technical, and largely invisible to most of the financial world. Now, in 2025, they are stepping onto the global stage, reshaping how money moves and who controls it. These digital assets, typically pegged 1:1 to the U.S. dollar, are processing more than $650 billion in transactions monthly and have grown to a circulating supply of over $240 billion. And with Wall Street heavyweights like Citigroup, Morgan Stanley, and Bank of America making direct moves into the space, the stablecoin boom has become impossible to ignore. Last week, Citi's global head of Future of Finance, Ronit Ghose, described this moment as blockchain's "ChatGPT moment," a reference to the breakout year of generative AI. He wasn't exaggerating. A recent Citi report projected that stablecoin issuance could grow to $1.6 trillion by 2030 in a base case, and as much as $3.7 trillion under a bullish scenario, as reported by Reuters. Wall Street Finds Its Use Case The clearest sign that stablecoins are going mainstream came on July 15, when Citigroup CEO Jane Fraser confirmed the bank is actively exploring the launch of a Citi-branded stablecoin. Speaking at an investor conference, she said Citi is also investigating tokenized deposits and blockchain-based payment infrastructure, as reported by Reuters. The response was swift. Within 24 hours, Bank of America announced that it expects to launch a U.S. dollar stablecoin in the coming quarters. Morgan Stanley, meanwhile, said it is weighing stablecoin usage for settlement and custody operations, according to Reuters. Mastercard is also building stablecoin compatibility into its cross-border payment rails, a clear sign that traditional finance is no longer waiting on the sidelines. This institutional embrace comes on the back of new regulatory clarity. The GENIUS Act—passed with broad bipartisan support in the U.S. Senate and likely to clear the House later this month—establishes a legal framework for fiat-backed stablecoins. It mandates full reserve backing, regular audits, and licensing through federal or state banking regulators, as covered by Reuters. Digital Dollars, Real Power Far from undermining the U.S. dollar, stablecoins are—at least for now—reinforcing its global dominance. Over 99% of all stablecoins in circulation are dollar-backed. Their reserves, typically held in short-term U.S. Treasuries, are deepening demand for U.S. government debt and, in some cases, lowering borrowing costs. Tether, the largest stablecoin issuer, holds $98 billion in Treasuries, which researchers say has helped suppress yields on short-term bills by as much as 24 basis points. That data point comes from a peer-reviewed academic study on stablecoin reserves, as highlighted by Reuters. Federal Reserve Governor Christopher Waller, who has previously been cautious about the digital asset space, acknowledged earlier this month that stablecoins could reduce costs in payment systems without compromising financial stability. He added that the dollar remains strong and demand for it "is only increasing in tokenized form," as reported by Reuters. Yet cracks remain. The Bank for International Settlements recently issued a warning that stablecoins, if allowed to scale unchecked in countries with weaker currencies, could erode monetary sovereignty and trigger destabilizing capital outflows. This concern is particularly acute in parts of Africa, Latin America and Southeast Asia, where dollar-backed stablecoins are increasingly used as shadow currencies. The BIS position was reported in detail by Reuters. The New Currency Battlefield The geopolitical implications of stablecoins are now being openly discussed in central bank meetings from Brussels to Beijing. Ant Group is preparing to issue a stablecoin in Hong Kong backed by a basket of Asian currencies including the Chinese yuan, the Singapore dollar, and the Hong Kong dollar. While this signals a challenge to dollar-backed coins, it's worth noting that many of these projects still rely on dollar-denominated reserves for trust and liquidity. Details of Ant Group's plans were first reported by Reuters. Stablecoins may therefore be less of a competitor to the dollar and more of an amplifier—digitizing dollar access globally without traditional banking rails. That may benefit U.S. financial influence, but it also opens the door to harder questions around compliance, capital controls, and the risk of U.S. monetary policy becoming "too global to contain." A Dollar Reinvented, Not Replaced Stablecoins are giving the dollar a new lease on life. As programmable, borderless assets that can operate 24/7 across blockchain networks, they're expanding the dollar's reach into markets traditional banks can't or won't serve. Some analysts now argue that stablecoins are doing more to globalize the dollar than SWIFT ever did. But with great reach comes great responsibility. The U.S. must ensure that stablecoin issuers are transparent, accountable, and properly integrated into the broader financial system. That includes rigorous audits, robust liquidity protections, and seamless integration with banking regulation. In the end, stablecoins aren't replacing the dollar. They're reformatting it for the digital age. Whether that strengthens U.S. economic power—or hands it to new actors—depends on how well policymakers manage this transition.
Yahoo
13-05-2025
- Business
- Yahoo
Stablecoins Will Expand Beyond Crypto Trading, Become Part of Mainstream Economy, Citi Predicts
The stablecoin market could soon eclipse the entire crypto trading ecosystem that gave birth to it as regulatory tailwinds allow for the integration of the fixed-value tokens into the mainstream economy, according to predictions from global bank Citi. Above and beyond their role as tokenized cash for the crypto trading community, stablecoins — digital tokens whose value is pegged primarily to the U.S. dollar — are already expanding into payments and remittances. The next five years will likely see them replacing some overseas and domestic U.S. currency holdings as well as forming part of the short-term liquidity held at banks, according to a recent report from Citi Institute's Future Finance think-tank. If yield-bearing stablecoins can be issued, those may find a role in term deposits and retail money market funds. 'We're looking at the integration of stablecoins into what you call the mainstream economy,' Ronit Ghose, the global head of Future of Finance, Citi Institute, said in an interview. 'For example, stablecoins could be the cash leg for tokenized financial assets, or for payments by SMEs and large corporates. The dollar, and to a lesser extent the euro, has this kind of international currency status. Stablecoins allow people all over the world to hold dollars or euros in an easy, low cost way.' The stablecoin market size is currently around $240 billion, led by Tether's $145 billion USDT and Circle's $60 billion USDC. In Citi's base-case prediction, stablecoins will grow to $1.6 trillion by 2030, provided regulatory support and institutional integration take hold. In the bank's more bullish scenario, the market could balloon to $3.7 trillion. (The global cryptocurrency market cap today stands around $3.45 trillion.) Large crypto firms like Fireblocks, a platform for managing and moving crypto assets, said it's also noted a swing in stablecoin use away from a settlement and on/off ramp trading tool toward payments. 'Payment companies are leveraging stablecoins for a variety of pure-play payment flows, including cross-border transfer, remittance, merchant settlements and others,' CEO Michael Shaulov said in an email. 'Payment companies represent 11% of all of our clients, but 16% of the overall stablecoin transactions with over 30% growth of Q/Q in volumes. It is likely that this growth will continue, and they will represent 50% of the stablecoin volume within 12 months.' Over the past 90 days, the combined USDT and USDC volume on Fireblocks was $517 billion, some 44% of the total volume, a figure that has doubled over the past several years. Of that, payment companies generated $82 billion, up 38.2% quarter over quarter, Fireblocks said. The Empire Strikes Back In the past, Citi's Future Finance team has weighed the potential of central bank digital currencies (CBDCs), often seen as the antithesis of freewheeling libertarian innovation by the crypto community, a view also held by President Donald Trump. For Citi's Ghose, the growth of stablecoins raises many questions: If the U.S. supports stablecoins, will Europe too? Or will Europe prefer CBDCs? Will CBDCs grow in the rest of the world? How will deposit tokens and tokenized deposits play out? Whatever the landscape looks like, banks will likely avail themselves of all of the above, Ghose said. All banks, by definition, conduct inter-bank payments, which make sense with a wholesale CBDC, as well as retail CBDCs, he said. 'Depending on the country, there may be a stablecoin option or there may be a CBDC option,' Ghose said. 'From a crypto perspective, it's like Starwars, where the CBDCs are the evil Empire, as opposed to the crypto guys, who see themselves as Luke Skywalker.'Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Tahawul Tech
09-05-2025
- Business
- Tahawul Tech
MENA Fintech Association announces new leadership for Digital Assets Working Group
The MENA Fintech Association (MFTA), the leading not-for-profit organization and among the top four fintech bodies globally, committed to fostering innovation and collaboration within the fintech community across the Middle East and North Africa, is proud to announce the appointment of Ronit Ghose, Mo Ali Yusuf, and Serena Sebastiani as the new Chairs of its Digital Assets Working Group. Nameer Khan, Chairman of the MENA Fintech Association & Founder of Fils, said, 'The leadership of Ronit, Mo Ali, and Serena marks a new milestone in MFTA's journey to revolutionize the fintech landscape. Their unique expertise and shared vision will elevate the Digital Assets Working Group's initiatives, driving innovation while addressing the challenges and opportunities of this rapidly evolving space. With their guidance, we are confident that MFTA will continue to play a central role in shaping policies, fostering collaboration, and positioning MENA as a global leader in digital finance.' Over the past year, the Digital Assets Working Group has made significant strides in advancing the understanding and adoption of digital assets. The group has convened numerous high-impact events, including industry round tables during GITEX, boardroom discussions on stable coins with Circle, and other thought leadership initiatives aimed at fostering collaboration and regulatory clarity. Ronit Ghose, a globally recognized fintech thought leader, shared his enthusiasm for the role and said, 'The MENA region stands at the cusp of a financial revolution powered by digital assets and blockchain technologies. This is not just about adopting new tools but about redefining how we think about trust, transparency, and accessibility in the global financial ecosystem. I am honored to lead this charge alongside MFTA, bringing together a coalition of visionaries to unlock the region's potential and drive meaningful progress for generations to come.' Mo Ali Yusuf, a passionate advocate for digital asset infrastructure, emphasized the importance of partnership and progress, said: 'Digital assets represent a paradigm shift, offering unparalleled opportunities to reimagine finance and empower individuals and businesses alike. At MFTA, we are not just driving innovation; we are building a collaborative framework that ensures these technologies are inclusive, sustainable, and impactful. I look forward to working with the brightest minds and most forward-thinking leaders to bridge gaps and shape the future of digital finance in the MENA region.' The MENA Fintech Association (MFTA) is an inclusive, not-for-profit organization committed to promoting open dialogue and innovation within the MENA fintech community. MFTA supports a diverse network of fintech startups, SMEs, financial institutions, technology companies, and regulators. Serena Sebastiani, a distinguished expert in sustainable and inclusive finance, and said,'Digital assets have the potential to democratize finance, enabling broader access and fostering economic resilience in ways we are only beginning to understand. This is a pivotal moment for the industry, and I am thrilled to contribute to MFTA's mission of leading thoughtful conversations, setting standards, and creating opportunities for everyone to participate in this transformative journey. Together, we can build a future where financial systems are not just more efficient but more equitable.'
