Stablecoins Can Power Global Payments: Druckenmiller
Billionaire investor Stanley Druckenmiller says blockchain and stablecoins could be just a decade away from powering the global payment system — though he's not sold on the idea of crypto acting as a store of value.
In an interview with Morgan Stanley that was recorded on January 30 and released on Friday, the former hedge fund manager said that blockchain-based tokens – especially stablecoins – will increase productivity in the payments space.
“Blockchain and the use of stablecoins, if you want to throw crypto into it, tokens, it's incredibly useful in terms of productivity,” said Druckenmiller.
“I predict that our entire payment system will be stablecoin in 10 or 15 years,” he said, adding that stablecoin is more efficient, faster and cheaper than current solutions.
Druckenmiller founded Duquesne Capital Management in 1981 and closed the fund in late 2010. During that time he averaged 30% annual return and did not experience a single year.
Druckenmiller said in May 2021 that a blockchain-based system could replace US dollar-driven payment systems due to a lack of trust in the traditional banking system.
“Well, the problem is clearly identified. It's Jerome Powell and the rest of the world, the central bank. There's a lack of trust,” he told CNBC's Squawk Box at the time.
Several traditional payment organizations such as Western Union, MoneyGram and Zelle have announced plans to launch stablecoin settlement systems following the passage of the stablecoin-focused GENIUS Act in July.
Drunk Miller does not sell on crypto as a value store.
Druckenmiller, despite his convictions against blockchain and stablecoins, does not believe that cryptocurrencies such as Bitcoin (BTC) can function as a store of value.
“Finding a problem is a solution,” Druckenmiller told Morgan Stanley.
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“It wasn't necessary,” but crypto has become a brand that some people like, so it serves as a store of value for them, he said.
In the year In October 2023, Druckenmiller said he compared bitcoin to gold, saying he preferred the latter, a “5,000-year-old brand”.
Druckenmiller went on to say that he doesn't own any bitcoins, but that he should.
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