Stablecoins could capture 10% of the global economy in the next decade: Circle CEO

Circle CEO Jeremy Allaire has claimed that stablecoins could account for 10% of “global economic money” over the next decade or so.

Allaire shared his vision in a June 19 X post, revealing the main reasons why he is “more bullish” on cryptocurrencies and stablecoins than ever before.

Stablecoins could revolutionize the global economy

Allaire noted that stablecoins, a “killer application” for crypto, have improved cross-border trade, 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 tender” in most major jurisdictions.

“Most of the world’s largest payment 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 optimistic than ever 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 vast majority of people have an extremely narrow and limited understanding of what is…

— Jeremy Allaire (@jerallaire) June 19, 2024

Allaire speculated about a future where 10% of the world’s economic money could be stablecoins. He suggested that shifting credit intermediation from fractional reserve loans to on-chain credit markets with stablecoins could open up credit and debt to a wider 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 that all this can be achieved in the next decade.

The CEO’s optimistic outlook is based on the belief that the current phase of crypto adoption is just the beginning. “We are still in the VERY EARLY STAGES of crypto adoption,” he stressed, suggesting that the rapid pace of technological advances and increased acceptance will lead to significant changes in the next decade.

Crypto transformative potential

“I’ve been building Circle for over 11 years, and I’ve never been more optimistic than now,” Allaire said, noting his belief that most people have a narrow understanding of ongoing developments in the space. cryptographic This limited awareness, he argues, is a positive indicator of the industry’s untapped potential and future growth.

Drawing on his years of observing Internet technology adoption, Allaire compared the evolution of open networks, protocols and software to the current trajectory of blockchain technology. He emphasized the transformative impact of each wave of Internet infrastructure on various industries, which he sees reflected in the crypto space.

“Crypto seems poised to catapult society and the economy in tremendously powerful new ways,” noted Allaire. He recalled the early days of Bitcoin and the initial skepticism surrounding the 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.

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