“Fiat is hopeless,” says Elon. But is crypto ready yet? 😨

Welcome back to PayFi Weekly!

This week, stablecoins get a dose of reality. It's a heartbeat skip, but not a dead end. Meanwhile, Ripple makes a bold banking move, a billionaire’s bank, and Elon Musk says Fiat is “hopeless.”

Let’s dive in 👇

💱 Stablecoin Snapshot

Are the multi-trillion-dollar forecasts for stablecoin markets by top banks like Standard Chartered far too optimistic? JP Morgan thinks so 💭

JP Morgan’s new projection is much more grounded. Just $500 billion by 2028 (a mere 2x the current market cap)! According to JP Morgan, 88% of stablecoin activity is still tied to crypto-native use cases (think trading, lending, collateral). And only 6% (around $15B) is being used in real-world payments or commerce.

🔨 JPMorgan also dropped the hammer on Circle, giving its shares an “underweight” rating and a 2026 price target of $80 (down more than 50% from current estimates).

JPMorgan’s message is clear: don’t expect real-world dominance just yet. The tech is solid, but the ecosystem still has growing up to do.

Get the scoop here

⚖️ Regulation

🇭🇰 Hong Kong is set to issue its first stablecoin licenses under new rules starting August 1, requiring full reserve backing and strict AML compliance. However, with only a handful of approvals expected this year, even major players like Ant and JD may face a long wait. Read more here

🇨🇳 Top Chinese economists are urging the government to back Yuan-based stablecoins for cross-border payments, viewing it as a way to challenge dollar dominance. Dive into the full story

🚨 The FATF is sharpening its focus on stablecoins and DeFi, hinting at the next wave of regulatory crackdowns in its latest checklist. With growing concern over illicit activity and lagging global compliance, more targeted rules are expected by next summer. Explore the update

🌍 Adoption

🪆Russia’s state-run conglomerate Rostec is launching a Ruble-backed stablecoin called RUBx on the Tron blockchain and rolling out RT‑Pay, a payment platform to integrate it with traditional banks. Learn more

🇯🇵 Japan’s Minna Bank is partnering with Fireblocks, Solana Japan, and TIS to pilot Solana‑based stablecoins and Web3 wallets for everyday payments. Explore the project

🇨🇦 The Bank of Canada has published a new research paper outlining a technical blueprint for a retail CBDC, prioritizing privacy and transaction speed in its proposed digital dollar design. Review the roadmap

🛠 Tech & Partnerships

📄 Ripple has applied for a U.S. banking license and a Fed master account to boost RLUSD operations, enabling 24/7 issuance and redemption. This move puts it in the race with Circle and Anchorage for mainstream legitimacy under the GENIUS Act. Explore the full story

Also Read: What Is RLUSD Stablecoin?

🤑 A collective of Silicon Valley billionaires (including Palmer Luckey, Peter Thiel, and Joe Lonsdale) is launching a new digital bank named “Erebor” aimed at serving crypto, AI, and defence startups underserved by traditional lenders. The bank applied for a national charter and would support stablecoin deposits and crypto-backed loans. Read more

🏦 MultiBank Group is preparing to launch its MBG token in July. It’d be a utility token backed by RWAs in an ecosystem with $35 billion in daily trading volume and 17 global licenses. Check out the press release

🌍 Everything Else

🇦🇪 UAE authorities have debunked claims that cryptocurrency investors, specifically Toncoin holders, can obtain a Golden Visa, emphasizing that residency is only available to select categories, including real-estate investors, scientists, entrepreneurs, and frontline workers, and warning the public against misleading offers. Get the official clarification

🇺🇸 Elon Musk has confirmed that the newly formed America Party will embrace Bitcoin, declaring “fiat is hopeless” in response to a social media query. This move signals a strong crypto-leaning platform as Musk shifts focus to midterm congressional races under his new political brand. Read Musk’s announcement

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