Stablecoins are now getting the spotlight as Jeremy Allaire, CEO of Circle, expressed his faith in the future of stablecoins. Yes, crypto has been a significant thing for the past years but even with all the buzz going on for cryptocurrencies, it still has nothing on actual legal tender. You could say crypto is putting up a brave front, but it hasn’t given money a run for its money. However, that might be able to change. 

Related: Stablecoins Bypassing Sanctions, Legal Bitcoin Wallet Hack, Grayscale’s Ether ETF Challenges, and AI Browsers Review

Source: imgflip

Mr. Allaire has said that we may soon be living in a world where stablecoins make up 10% of “global economic money.” Yes, you could say it’s a bold claim, but the man did make some pretty good points as to why the future of stablecoins might be getting more stable, at least in the next 10+ years.

In a June 19 post on his X account, Allaire explained. “Most of the world’s largest payments companies are actively using this technology and exploring how to expand their usage as the benefits of public chains and stablecoins become apparent to everyone,” 

This is true; crypto has seen better adoption in recent years, even with its volatile nature. Since stablecoins are more stable, they have seen even better adoption, especially in the corporate world. Because of this increase in adoption, Allaire believes that stablecoins will make up a larger and larger portion of the world’s $100 trillion market for electronic money by the end of the year 2025. 

Allaire also stated that the addressable market size is somewhere in the billions, and releasing these digital dollars will help tap the unbanked population into being banked while simultaneously lowering remittance costs and paving the way for seamless cross-border commerce.

As for a timeframe for his prophecy, Allaire said, “[This] is achievable over the next 10+ years”. But again, this might be tough because, as data from the World Population Review revealed, the stablecoin market is worth about $162 billion, which only accounts for 0.2% of the $80 trillion money market. 

Source: imgflip

More Info:

Ten years from now is only 2034, so for Allaire’s prophecy to come true by then, the stablecoin market would need to grow at a compounded annual growth rate of 47.7%. It seems like a wish only Santa can grant, but let’s not forget that crazy stuff always happens in the crypto world. Who could have guessed ten years ago that crypto would be what it’s worth now? Besides Allaire’s an expert in these things, his Circle currently has a $32.8 billion market cap, making it the second largest stablecoin after Tether.

Crypto’s big dream since its inception has been mass adoption and real-life use cases. While it has achieved the second dream to a considerable and impressive extent, the first is still a long way to go.

Disclaimer: All materials on this site are for informational purposes only. None of the material should be interpreted as investment advice. Please note that despite the nature of much of the material created and hosted on this website, HODL FM is not a financial reference resource and the opinions of authors and other contributors are their own and should not be taken as financial advice. If you require advice of this sort, HODL FM strongly recommends contacting a qualified industry professional.