Stablecoins are designed to keep a steady value—by pegging to a reserve asset like the US dollar—while delivering the speed and lower cost of blockchain-based payments. In this episode of The Decisive, S&P Global Market Intelligence economist Robert Matthee unpacks how stablecoins work, why their market has surged to an estimated $300 billion, and what's driving forecasts that the space could expand dramatically in the coming years.

Robert and host Kristen hallam dig into what's powering adoption: demand for cheaper cross-border transfers, growing use by major issuers, and the impact of clearer regulation—including the US GENIUS Act—on mainstream acceptance.

We also look at stablecoins through the lens of emerging markets, especially sub-Saharan Africa, where FX shortages, inflation, and friction-filled payment rails have made "digital hard currency" an appealing alternative for households and businesses. The episode also explores the tradeoffs—how widespread stablecoin use could accelerate currency substitution, weaken domestic monetary policy, and pressure local banks by pulling deposits out of the traditional system.

Finally, we close with what could come next—from continued growth in dollar-backed coins to new experiments, including stablecoins backed by assets like gold.

Listen now to gain insights on the future of stablecoin adoption.

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Credits:

Host: Kristen Hallam
Guest: Robert Matthee
Produced By: Kristen Hallam
Edited By: Marz Marcello
Published With Assistance From: Sophie Carr, Feranmi Adeoshun

Stablecoin Adoption: The Next Wave