Stablecoins: How Will They Impact Financial Centers?
Originally published by the Asian Financial Cooperation Association (AFCA Working Paper No. 2025-15/206), by Dr. Jochen Biedermann, Managing Director of the World Alliance of International Financial Centers (WAIFC).
This working paper argues that stablecoins are a foundational component of the digital financial landscape rather than a passing fad, and forecasts a multi-polar future in which CBDCs, regulated stablecoins, and tokenized deposits coexist with no single winner. Drawing on a July 2025 survey of 17 senior representatives from 13 leading financial centers, it finds over 80% expect stablecoins to play a significant role as a medium of exchange within 5-10 years. It notes 2024 stablecoin transfer volume exceeded US$27 trillion (per Visa/Allium via the World Economic Forum), surpassing Visa and Mastercard combined, and lays out what international financial centers must do on regulation, infrastructure, and talent to stay competitive.
