Stablecoins To Account For 10% Of Global Economy: Circle CEO
Jeremy Allaire, the CEO of USDC issuer Circle, has predicted that stablecoins are on course to account for 10% of the global economy in the next ten years.
Allaire shared his views in a social media post, discussing his perspective on the cryptocurrency market and the growing integration of stablecoins in the global financial ecosystem.
The Impact Of The Internet On Crypto
According to Allaire, stablecoins are on the cusp of a significant wave of adoption, given their growing acceptance and integration into global financial markets, adding that he was more bullish than he had ever been about crypto. The Circle CEO emphasized the rapid advancements in blockchain technology and the growing use of stablecoins in several services and financial transactions, highlighting their potential to significantly impact the global economy in the next ten years.
“I’m more bullish than I have ever been about crypto. I have been building @Circle for over 11 years, and at no time have I been more optimistic than right now. I also believe that the overwhelming majority of people have an extremely narrow and limited understanding of what’s unfolding. And that’s super bullish, too.”
According to Allaire, the internet has seen an influx of open networks, protocols, and software that have helped transform industries and people’s lives. He added that crypto was on the verge of powerfully transforming society and the economy. Earlier, there was no way to fully ensure trusted data and transactions, meaning the internet’s potential was limited. However, crypto offered a solution to this problem through a decentralized and trustworthy framework.
“Internet infrastructure had enabled frictionless, nearly free movement of data and seamless ability to connect and deploy software and hardware on a global network, and it was clearly struggling with its own success and weight. The internet lacked a layer for trust, and without that, it was capped in terms of the utility it could provide to the world.”
Stablecoin Market To See Unprecedented Growth
While discussing the future of stablecoins, Allaire stated that their current market capitalization sits at $162 billion, only 0.2% of the $80 trillion money market, and predicted they would make up 10% of the market by 2034. The stablecoin market would need a compounded annual growth rate (CAGR) of nearly 48% to reach this target. Stablecoins have seen widespread growth and have emerged as a key component of the crypto markets. Circle’s USDC and Tether’s USDT dominate the markets and are the largest stablecoins in the crypto space.
“How far have we come?…Digital assets have become an accepted part of the emerging global financial system, with virtually every major government in the world setting clear rules for how digital assets can be issued, used, and traded.”
Allaire predicted that by the end of 2025, stablecoins will be legal electric money almost everywhere, setting them up to become a significantly larger portion of the market.
“By the end of 2025, stablecoins will be “legal electronic money” almost everywhere, which sets them up to become a larger and larger portion of the $100T+ market for electronic money.”
Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.
