Bloomberg Intelligence analyst names cryptocurrencies that will become more popular than bitcoin

The Bloomberg Intelligence analyst suggested that in the near future, stablecoins will be more popular than bitcoin. The only thing left to be done is to resolve the issue of regulation, Jamie Coutts emphasized.

The cryptocurrency expert believes that despite the lack of clear rules for regulating stable cryptocurrencies in the United States, they are expected to experience a real boom. The analyst reminded that already in 2022, there was a significant growth of the stablecoin market: the total volume of payments in the first level blockchains reached almost $ 6.9 trillion. However, since the beginning of 2023, this figure has decreased by 80%.

Coutts suggested that in the next 3−5 years, depending on market factors, the widespread adoption of stablecoins will be much faster than that of bitcoin. The reason is that more and more large financial institutions are showing interest in stablecoins and are even trying to follow the example of the payment company PayPal, which recently launched its own dollar-pegged token PYUSD.

In 2021, Visa presented a solution for the interaction of stablecoins, central bank digital currencies, and cryptocurrencies, and in March 2023, Mastercard introduced a cryptocurrency card with support for stablecoins called Stables. Recently, one of the largest e-commerce platforms Shopify added support for the decentralized payment protocol Solana Pay, allowing customers to pay with stablecoins.

According to a Bloomberg analyst, payment companies that ignore stablecoins miss a lot of opportunities, including the increase in payment speed. However, the use of stablecoins for payments may be limited by the capabilities of blockchains, as open networks are not able to provide the same scalability as Visa or Mastercard, Coutts noted.

Earlier, Jamie Coutts said that the launch of PayPal’s stablecoin could have a significant impact on the entire ETH ecosystem, as PayPal has about 435 million active accounts.