A Qualitative Deep Dive into Swedish Financial Stakeholders’ Sensemaking of Stablecoins

Abstract

Global financial transactions face persistent challenges, including high costs, slow processing times, limited accessibility, and a lack of transparency, often taking 1-3 banking days to complete depending on the destination. These inefficiencies have spurred innovations outside traditional banking, notably the development of stable- coins. Stablecoins leverage blockchain technology and are a digital form of money designed to maintain a stable value by being pegged to assets, such as fiat currencies or commodities. The market valuation of stablecoins has surged from around $ 5 billion to nearly $ 200 billion in two years, showcasing stablecoins growing impact on the financial sector. The potential path of stablecoins reaching mass adoption involves not only economic challenges but also a complex political battleground. This thesis’ aim is to contribute to the currently scarce research regarding sensemak- ing of how representatives of Swedish financial stakeholders perceive and anticipate the emergence of stablecoins. Employing a qualitative research design, this study gathered data through semi-structured interviews with key representatives from the Swedish financial sector. The findings reveals that perceptions of stablecoins are influenced by actor dynam- ics, individual factors, and technical aspects, with regulatory actors playing a pivotal role. Furthermore, through these influencing factors the study revealed that there exists a market divide characterized by "us versus them" mentality. This divide could grow, complicating regulatory collaboration and stifling innovation, potentially driv- ing innovators abroad to more favorable judicial environments in the future. The conclusion underscores the need for enhanced collaboration, open debate, mutual understanding and learning among market actors to maintain a well-functioning and competitive Swedish financial market.