Circle CEO Optimistic About Stablecoin Development
With the rapid advancement of technology, cryptocurrencies and blockchain technology have gradually become an important component of the global economy. The emergence of stablecoins has brought unprecedented opportunities to society and the economy. Jeremy Allaire, the CEO of stablecoin issuer Circle, believes that stablecoins may account for 10% of the “global economic currency” in the next ten years or longer.
On June 19th, Allaire released a tweet, stating that stablecoins are becoming an increasingly accepted form of digital currency. By the end of 2025, stablecoins will occupy a larger proportion in the $100 trillion global electronic currency market and become “legal electronic currencies” in most major jurisdictions, further promoting their application and development worldwide.
“All of the world’s largest payment companies are actively using blockchain and stablecoin technology and exploring how to expand their scope of use because the benefits of public chains and stablecoins are obvious to everyone.”
According to data from the US think tank “World Population Review,” the current market value of stablecoins is $162 billion, accounting for only 0.2% of the $80 trillion currency market. To achieve Allaire’s 10% prediction, the stablecoin market needs to grow at a compound annual growth rate of 47.7% per year by 2034.
Although this may seem astonishing, considering the potential of stablecoins in reducing remittance costs and achieving seamless cross-border commerce, this goal is not unattainable.
Allaire further predicts that within the next ten years, when 10% of the global economic currency is in stablecoins, credit intermediaries will shift from fractional reserve lending to the on-chain credit market, which will be built on more secure digital currency tools like stablecoins.
This transformation is not only a technological advancement but also a reshaping of the essence of the financial system. The on-chain credit market is more transparent and efficient, not only reducing systemic risks but also making the global financial system more inclusive.
The next ten years will see an increase of one billion users.
Allaire’s optimism is not limited to the stablecoin market.
As the global financial system becomes more accepting of digital assets, countries worldwide have started to establish clearer regulatory frameworks. From payments to social, gaming, and enterprise applications, the use of blockchain technology will receive more attention.
He believes that within the next ten years or longer, the adoption of cryptocurrencies may increase by “billions of users” across “millions of applications,” and there will be more businesses and finance executing smart contracts on blockchain infrastructure.
Compared to when Bitcoin was just born a decade ago, the scale of development in the Web3 world today is truly astounding. Just like the internet wave back then, the Web3 wave is also growing.
However, the overall industry is still in the early stages of cryptocurrency adoption, and efforts are being made to enhance the user experience (UX) of cryptocurrencies and blockchain technology to unlock the potential of consumer-grade applications. It is crucial for cryptocurrencies to enter the mainstream market when consumers can easily use stablecoins for payments, remittances, and cross-border transactions.
The popularization and application of cryptocurrencies will not only change the existing financial system but also have profound effects on other aspects of society and the economy. With technological advancements and expanded applications, cryptocurrencies and blockchain technology will bring more opportunities and challenges to future economic and social development.
References:
Cointelegraph, Cryptoslate
