Circle CEO Bullish on Stablecoin Development
With the rapid advancement of technology, cryptocurrencies and blockchain technology have become an integral part of the global economy. The emergence of stablecoins has provided unprecedented opportunities for 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 decade or longer.
Allaire released a tweet on June 19th, stating that stablecoins are increasingly being accepted as a digital currency. By the end of 2025, stablecoins will have a larger share in the global $100 trillion electronic currency market, and will become “legitimate digital currencies” in most major jurisdictions, further promoting their application and development globally.
“All the major payment companies in the world are actively using blockchain and stablecoin technology and exploring how to expand their usage, as the benefits of public chains and stablecoins are evident 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% by 2034.
Although this seems astonishing, considering the potential of stablecoins in reducing remittance costs and enabling seamless cross-border commerce, this goal is not unattainable.
Allaire further predicts that within the next decade, when 10% of the global economic currency is stablecoins, credit intermediaries will shift from fractional reserve lending to on-chain credit markets, which are built on more secure digital currency tools like stablecoins.
This transition is not just a technological advancement but also a reshaping of the essence of the financial system. On-chain credit markets are more transparent and efficient, not only reducing systemic risks but also making the global financial system more inclusive.
The next decade will see an increase of 1 billion users
Allaire’s optimism extends beyond the stablecoin market.
As the global financial system becomes more accepting of digital assets, countries around the world are also beginning to establish clearer regulatory frameworks. From payments to social media, gaming, and enterprise applications, the use of blockchain technology is gaining more attention.
He believes that in the next decade or longer, the adoption of cryptocurrencies could increase by “billions of users” across “millions of applications,” and there will be more business and financial transactions executed through smart contracts on blockchain infrastructure.
Compared to the early days of Bitcoin’s birth a decade ago, the scale of development in the Web3 world 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 cryptocurrency and blockchain technology are striving to improve user experience (UX) to unlock the potential of consumer applications, making it easy and convenient for ordinary users to use cryptocurrencies. This is crucial for the mainstream adoption of cryptocurrencies. When consumers can easily use stablecoins for payments, remittances, and cross-border transactions, cryptocurrencies will truly enter the mainstream market.
The widespread adoption and application of cryptocurrencies will not only change the existing financial system but also have a profound impact on other aspects of society and the economy. With technological advancements and the expansion of applications, cryptocurrencies and blockchain technology will bring more opportunities and challenges to future economic and social development.
References:
cointelegraph, cryptoslate