Circle CEO Jeremy Allaire is very enthusiastic about the potential of stablecoins. That makes some sense, because his company manages the largest stablecoin after Tether with USD Coin (USDC). According to Allaire, stablecoins could capture 5%-10% of the total money supply in the next decade.
Next year will be crucial for stablecoins
In any case, next year promises to be crucial for stablecoins, according to Allaire. He expects that many countries from the G20, a powerful group of countries, will have new legislation and regulations for the industry before the end of 2025.
He is very bullish for the next ten years. In that period, he sees the market for stablecoins growing to a market of 5 to 10 trillion dollars.
He sees the technology behind the stablecoins spreading at a speed comparable to streaming video and online shopping.
“We are in the very early stages of stablecoin adoption, but within 10 to 20 years this technology will be part of the global financial system,” said Jeremy Allaire.
The most successful application after Bitcoin
You could say that stablecoins are the most successful application after Bitcoin for the technology that Satoshi Nakamoto invented.
So far, Ethereum’s smart contracts do not appear to be able to actually generate much value, other than facilitating trading in speculative altcoins and non-fungible tokens (NFTs).
Stablecoins, on the other hand, have many applications and the overall market value of the industry continues to grow. Stablecoins now have a total market cap of $170 billion.
Especially in countries where people are plagued by inflation and it is difficult to obtain US dollars in normal ways, stablecoins offer an interesting solution.
In any case, Jeremy Allaire’s Circle managed to grow into a $35 billion project. That’s pretty impressive considering the company only started six years ago. Tether is still by far the market leader with a market cap of $120 billion.
Source: https://newsbit.nl/circle-ceo-stablecoins-worden-biljoenen-dollars-waard/
