cryptopotato.com
Circle CEO Jeremy Allaire has stated that stablecoins could account for 10% of “global economic money” within the next decade or so.
Allaire shared his vision in a June 19 X post, revealing the biggest reasons he’s “more optimistic” about crypto and stablecoins than ever before.
Stablecoins Could Revolutionize Global Economy
Allaire noted that stablecoins, a ‘killer app’ for crypto, have enhanced cross-border commerce, reduced remittance costs, and provided banking solutions to the unbanked. He predicted that by the end of 2025, stablecoins would be legally recognized as ‘legal electronic money’ in most major jurisdictions.
“Most of the world’s largest payments companies are actively using this technology,” Allaire noted, adding that national governments are also investing in blockchain infrastructure and passing laws to increase innovation.
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…
— Jeremy Allaire (@jerallaire) June 19, 2024
Allaire speculated on a future where 10% of global economic money could be stablecoins. He suggested that shifting credit intermediation from fractional reserve lending to on-chain credit markets using stablecoins could open up credit and debt to a broader market, similar to how Amazon and AdWords transformed commerce and advertising.
He envisions blockchain technology supporting billions of users and applications, revolutionizing finance, commerce, and governance. On-chain organizations will compete with traditional corporations, and political bodies will adopt blockchain for governance. He believes all of this is achievable within the next decade.
The CEO’s bullish outlook is based on the belief that the current phase of crypto adoption is only the beginning. “We’re still in the VERY EARLY STAGES in the adoption of crypto,” he emphasized, suggesting that the rapid pace of technological advancements and increasing acceptance will drive significant changes in the next decade.
Crypto’s Transformative Potential
“I have been building Circle for over 11 years, and at no time have I been more optimistic than right now,” Allaire stated, highlighting his belief that the majority of people have a narrow understanding of the ongoing developments in the crypto space. This limited awareness, he argues, is a positive indicator of the untapped potential and future growth of the industry.
Drawing on his years of observing internet technology adoption, Allaire compared the evolution of open networks, protocols, and software with the current trajectory of blockchain technology. He emphasized the transformative impact of each wave of internet infrastructure on various industries, which he sees being mirrored in the crypto space.
“Crypto seems like it’s on the cusp of catapulting society and the economy forward in tremendously powerful new ways,” Allaire noted. He reminisced about the early days of Bitcoin and the initial skepticism surrounding cryptocurrency, recalling how it was considered a fringe, if not illegal, innovation. Despite this, the persistence and creativity of early builders have propelled the technology to its current state.