J.P.Morgan wary of stablecoin's trillion-dollar growth bets, cuts them by half
Stablecoins have moved beyond their crypto trading roots to attract interest from fintechs and banks aiming to speed up payments and settlements, drawing attention from U.S. lawmakers, who last month passed the GENIUS Act in the Senate - a step analysts said could bring long-awaited regulatory clarity.
Before the Senate passed the stablecoin bill, Standard Chartered projected the market could reach $2 trillion by 2028, while Bernstein forecast in a June 30 note that supply would grow to about $4 trillion over the next decade.
But J.P.Morgan said payments adoption of stablecoins remains minimal, accounting for just 6% of demand, or about $15 billion. It estimated the stablecoin market at $250 billion, with most usage concentrated in crypto trading, decentralized finance and collateral.
"The idea that stablecoins will replace traditional money for everyday use is still far from reality," the brokerage said.
Stablecoin adoption beyond crypto markets faces hurdles from limited use cases and fragmented regulation, while international uptake remains limited as most countries focus on their own digital currencies or strengthening existing payment systems.
In June, the head of China's central bank pledged to expand the international use of the digital yuan or e-CNY.
Ant Group (688688.SS), opens new tab, an affiliate of e-commerce giant Alibaba (9988.HK), opens new tab, said it plans to apply for a license to issue stablecoins in Hong Kong through its overseas arm Ant International, which operates mobile payment app Alipay.
"Neither the rapid expansion of e-CNY nor the success of Alipay and WeChat Pay represent templates for stablecoin expansion in the future," J.P.Morgan said.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
The Independent
39 minutes ago
- The Independent
French intelligence: China used embassies to undermine sales of France's flagship Rafale fighter jet
China deployed its embassies to spread doubts about the performance of French-made Rafale jets after they saw combat in India and Pakistan 's clashes in May, French military and intelligence officials have concluded, implicating Beijing in an effort to hammer the reputation and sales of France 's flagship fighter. Findings from a French intelligence service seen by The Associated Press say defense attaches in China's foreign embassies led a charge to undermine Rafale sales, seeking to persuade countries that have already ordered the French-made fighter — notably Indonesia — not to buy more and to encourage other potential buyers to choose Chinese-made planes. The findings were shared with AP by a French military official on condition that the official and the intelligence service not be named. Four days of India-Pakistan clashes in May were the most serious confrontation in years between the two nuclear-armed neighbors, and included air combat that involved dozens of aircraft from both sides. Military officials and researchers have since been digging for details of how Pakistan's Chinese-made military hardware — particularly warplanes and air-combat missiles — fared against weaponry that India used in airstrikes on Pakistani targets, notably French-made Rafale fighters. Sales of Rafales and other armaments are big business for France's defense industry and help efforts by the government in Paris to strengthen ties with other nations, including in Asia where China is becoming the dominant regional power. France is fighting what it calls a disinformation campaign against the Rafale Pakistan claimed its air force downed five Indian planes during the fighting, including three Rafales. French officials say that prompted questions about their performance from countries that have bought the fighter from French manufacturer Dassault Aviation. India acknowledged aircraft losses but didn't say how many. French air force chief Gen. Jérôme Bellanger said that he's seen evidence pointing to just 3 Indian losses — a Rafale, a Russian-made Sukhoi and a Mirage 2000, which is an earlier generation French-made jet. It was the first known combat loss of a Rafale, which France has sold to eight countries. 'Of course, all those, the nations that bought Rafales, asked themselves questions,' Bellanger said. French officials have been battling to protect the plane from reputational damage, pushing back against what they allege was a concerted campaign of Rafale-bashing and disinformation online from Pakistan and its ally China. They say the campaign included viral posts on social media, manipulated imagery showing supposed Rafale debris, AI-generated content and video-game depictions to simulate supposed combat. More than 1,000 social media accounts newly created as the India-Pakistan clashes erupted also spread a narrative of Chinese technological superiority, according to French researchers who specialize in online disinformation. French military officials say they haven't been able to link the online Rafale-bashing directly to the Chinese government. Intelligence assessment says Chinese officials lobbied potential clients to ditch French planes But the French intelligence service said Chinese embassy defense attaches echoed the same narrative in meetings they held with security and defense officials from other countries, arguing that Indian Air Force Rafales performed poorly and promoting Chinese-made weaponry. The defense attaches focused their lobbying on countries that have ordered Rafales and other potential customer-nations that are considering purchases, the intelligence service said. It said French officials learned of the meetings from nations that were approached. Asked by AP to comment on the alleged effort to dent the Rafale's appeal, the Ministry of National Defense in Beijing said: 'The relevant claims are pure groundless rumors and slander. China has consistently maintained a prudent and responsible approach to military exports, playing a constructive role in regional and global peace and stability.' In recent years, China has stepped up disinformation campaigns on global social media platforms like X, Instagram or Facebook, using networks of state-sponsored influencers, sites that pose as news organizations, and fake social media accounts to spread narratives from Beijing. France's Defense Ministry said the Rafale was targeted by 'a vast campaign of disinformation" that 'sought to promote the superiority of alternative equipment, notably of Chinese design.' France considers the jet a 'strategic French offering' "The Rafale was not randomly targeted. It is a highly capable fighter jet, exported abroad and deployed in a high-visibility theater," the Defense Ministry wrote on its website. 'The Rafale was also targeted because it represents a strategic French offering. By attacking the aircraft, certain actors sought to undermine the credibility of France and its defense industrial and technological base. The disinformation campaign therefore did not merely target an aircraft, but more broadly a national image of strategic autonomy, industrial reliability, and solid partnerships.' Dassault Aviation has sold 533 Rafales, including 323 for export to Egypt, India, Qatar, Greece, Croatia, the United Arab Emirates, Serbia and Indonesia. Indonesia has ordered 42 planes and is considering buying more. China may be hoping to weaken the security relationships that France is building with Asian nations by spreading worries about the equipment it supplies, said Justin Bronk, an airpower specialist at the Royal United Services Institute, a defense and security think tank in London. 'From a point of view of limiting Western countries' influence in the Indo-Pacific, it would make sense for China to be using the performance of Pakistani weapon systems — or at least purported performance — in downing at least one Rafale as a tool to undermine its attractiveness as an export,' he said. 'They certainly saw an opportunity to damage French sales prospects in the region."
The Guardian
an hour ago
- The Guardian
So big, so beautiful: Fox News ignores the critics and champions Trump's bill
Donald Trump's mega-bill has been widely criticized in the press. News outlets and Democrats have warned that millions of people could be stripped of their health coverage through cuts to Medicaid, that cuts to food programs would see children go hungry, and that the legislation would cause the deficit to balloon. Fox News sees it differently. 'This legislation is packed with massive, huge, important wins for you, the American people,' Sean Hannity told viewers on Monday, as US senators debated the bill in Washington. 'Here's what the bill doesn't do. It does not decrease Medicaid, Medicare, Snap or social security benefits,' Hannity continued, a claim that completely contradicted the assessment of the Congressional Budget Office, which estimates the bill will cut Medicaid across the US by 7.6 million to 10.3 million people. Hannity had more. 'The big, beautiful bill also does not increase the deficit. Instead, the deficit will go down around a little shy of $2tn – that's to begin with, according to estimates,' he said. 'Because guess what? That's what happens when you cut taxes. It stimulates the economy, creates jobs, gets people off the welfare rolls. Guess what? People are working, now they're paying taxes.' It was unclear where Hannity got his $2tn number from, because he didn't say. But the CBO says the bill would add at least $3.3tn to the national debt over the next nine years, while the tax cuts will benefit high earners more than others. Hannity held up Ronald Reagan's tax cuts in 1981 as an example of how the deficit will be reduced – a take that ignored that those tax cuts saw an increase of the deficit, and had to be reversed over the rest of Reagan's presidency. Still, Hannity was sold. 'The American people are on the verge of a level of prosperity they have never experienced before,' he said. Hannity's interpretation was starkly different from the one many Americans were seeing. Even Republican senators have been dubious about the bill's benefits, with three voting against it in the early hours of Tuesday morning, and House Republicans wavering on Wednesday. Yet, on Tuesday, Laura Ingraham largely ignored the bill – framing it only as Democrats losing a battle to 'derail' the legislation before going on a minutes-long riff about a 'slide in patriotism' in the US. She went on to offer complaints that there were 'more foreign flags waving' in America's streets and that leftwing politicians believe that 'America can only be redeemed when she's totally dismantled and then remade, with millions of new people from other countries'. Elsewhere, there were occasional, albeit small, concessions that the 'big, beautiful bill' might not quite be the masterly piece of legislation the White House would have people believe. 'It's not perfect, but it does need to pass if we want this tax cut,' Ainsley Earhardt said on Fox & Friends at the start of the week. Her co-host Brian Kilmeade at least presented some of the negative points in an interview with Scott Bessent, the treasury secretary, on Tuesday, challenging him to address the claim that 'this is a tax break for the rich'. But Bessent didn't even attempt to address that, and Kilmeade was unwilling or unable to press him further. Later that day, the theme continued. Trace Gallagher pulled up data from the Tax Foundation and the Tax Policy Center during his show, with a series of bullet points claiming that if Trump's bill failed it would lead to tax increases for families and small business owners. Gallagher left out the part of the Tax Foundation's analysis where the organization said the bill would reduce incomes by 0.6% and result in a nearly $3.6tn deficit increase, and ignored the Tax Policy Center's verdict that most of the tax cuts in the bill would go 'to the highest-income households'. His guests seemingly overlooked those bits, too, as they kept up the ruse. 'No bill is perfect,' Elizabeth Pipko, a former spokesperson for the Republican National Committee, told Gallagher, as she claimed 'the Democrats seem to have forgotten that' before accusing the mainstream media, with no irony, of not accurately representing the bill. Pipko added: 'I think it will pass, and I think it'll go down in history as again another false alarm from the legacy media, from the Democrats, and another victory for President Trump.'
BBC News
an hour ago
- BBC News
Elon Musk tok about launching im own new political party
Elon Musk tok say e go launch new political party, weeks afta e quarrel wit US President Donald Trump. Di billionaire announce for im social media platform X say e don set up di America Party, e dey stand as a challenge to di Republican and Democratic two-party system. However, e dey unclear if de don formally register di party wit US election authorities. Musk, wey dem born outside of di US dey ineligible to run for di US presidency, but e neva tok who go lead di party. E first raise di prospect of forming a party during im public fight wit Trump, e leave im role in di administration and engage in serious public criticism wit im former ally. During dat time, Musk post one poll on X wia im ask users if dem want new political party in di US. Referencing di poll for one post on Saturday, Musk write: "By a factor of 2 to 1, you want a new political party and you go get am! "Wen e come to bankrupting our kontri wit waste & graft, we live in one-party system, no be democracy. "Today, dem form America Party to give you back your freedom." As of Saturday, di Federal Electoral Commission neva publish any documents indicating the party had been formally registered. While high-profile players dey outside di traditional two-party system in US politics, e dey difficult for dem make dem gain strong enough nationwide popularity to pose real threat. In di presidential election last year, candidates from di likes of Libertarian Party, di Green Party and di People Party all try in vain to stop Trump or im Democratic rival, Kamala Harris, from winning. Musk was until recently core supporter of Trump, dancing alongside am during election rallies last year and e bring of one im pikin, four-year-old son to meet Trump in di Oval Office. E dey among Trump key financial backer: Musk spend $250m (£187m) to help am regain office. Afta di election, e appoint am to lead di so-called Department of Government Efficiency (Doge), wey dey cut di federal budget. Elon and Trump fallout start wen he leave di administration in May and publicly criticise Trump tax and spending plans. Di legislation - wey Trump call "big, beautiful bill" - narrowly passed by Congress and di president sign am into law dis week. Di massive law include huge spending commitments and tax cuts, and e go add more than $3tn to di US deficit ova di next decade. Crucially for Musk, wey be di owner of electric-vehicle giant Tesla, Trump bill no focus on green transition or subsidies for products like Teslas. "Elon fit get more subsidy than any human being in history, by far," Trump write for im social media site, Truth Social, dis week. "Without subsidies, Elon go probably need to shop and head back home to South Africa." Trump threaten say Doge go look into subsidies in favour of Musk companies, e dey also tok about di billionaire oda businesses. Musk na also di owner of SpaceX, whey don launch rockets for di US goment, and Starlink, wey dey provide satellite service for US and European defence forces.
