The "GPT Moment" of stablecoins: The large-scale adoption of Blockchain in the financial and public sectors

The year 2025 could become the "ChatGPT moment" for the application of Blockchain in the financial and public sectors. The main driving forces include the supportive stance of U.S. regulators towards Blockchain and the public's ongoing focus on transparency and accountability in public spending.

1. The Rise of Stablecoins

Stablecoins are cryptocurrencies pegged to stable assets like the US dollar, and the main catalyst for their wide acceptance may be the clarity of US regulation. This will allow stablecoins to better integrate into the existing financial system.

As of the end of March 2025, the total value of stablecoins exceeded $230 billion, which is 30 times that of five years ago. We expect that by 2030, the total supply of stablecoins may reach $1.6 trillion under the baseline scenario, and $3.7 trillion under the optimistic scenario.

The development of stablecoins also faces challenges, including geopolitical risks, competition from central bank digital currencies, and the risk of bank runs. We expect that in the coming years, the stablecoin market will still be dominated by the US dollar, with about 90% priced in USD.

2. Blockchain Applications in the Public Sector

The main applications of Blockchain in the public sector include:

1. Public expenditure and finance: improve transparency, efficiency, and accountability.

2. Public funds and grant disbursement: streamline processes, enhance data security.

3. Public Record Management: Ensure the authenticity and accessibility of key data.

4. Humanitarian Aid: Simplify project coordination and resource allocation.

5. Asset Tokenization: Digitizing debt instruments, natural resources, etc.

6. Digital Identity: Provide a decentralized, tamper-proof authentication mechanism.

However, the large-scale application of Blockchain in the public sector also faces numerous challenges, such as lack of trust, interoperability issues, transformation difficulties, and unclear regulations.

3. Outlook

Stablecoins and blockchain technology are expected to reshape the financial and public sectors, but there are still many obstacles to overcome. As the regulatory environment becomes clearer and the public's demand for transparency and efficiency continues to rise, we may welcome the "GPT moment" of blockchain applications.