The total market capitalization of stablecoins has reached $322 billion, surpassing the foreign exchange reserves of over 95 countries.

Odaily reported that the total market capitalization of stablecoins has reached $322 billion, exceeding the foreign exchange reserves of over 95 countries. The amount of fiat currency held by users through non-traditional banking channels has now surpassed the official foreign exchange reserves of 95 countries, including Poland, Thailand, Mexico, as well as the United Kingdom, Canada, and the United Arab Emirates. Currently, only 14 countries/regions hold foreign exchange reserves that exceed the market cap of stablecoins. Stablecoins are widely used for cryptocurrency trading, DeFi settlements, and cross-border payments. A report from the Bank for International Settlements (BIS) points out that cross-border stablecoin flows have grown significantly since 2022, and are particularly active in regions with high inflation and severe exchange rate volatility. However, the BIS also warns that stablecoin transactions could trigger capital outflows, putting pressure on the depreciation of vulnerable local currencies. (CoinDesk)