Stablecoins to earn 10% in the next decade: Circle CEO
Stablecoins could account for 10% of the “global economic capital” in the next ten years or more, according to Jeremy Allaire, CEO of the Stablecoins Association.
It's almost a bold claim, but Allair points to a number of factors that could lead to a major expansion in Statcoin adoption over the next “10+ years.”
“Most of the world's largest payments companies are actively using this technology and are looking at how to expand their use as the benefits of public blockchains and stablecoins become visible to everyone,” Allaire explained in a June 19 X post.
The size of the market that can be reached is in the “billions”, and releasing digital dollars on the blockchain can fulfill the promise of enabling unbanked banking, reducing the cost of remittances and allowing cross-border trade, he said.
He pointed out that stablecoins are becoming an increasingly accepted form of digital currency and will account for a “larger and larger share” of the $100 trillion global electronic money market by the end of 2025.
“What will it look like when 10% of the global economy is stablecoins and the credit center shifts from fractional reserve lending to onchain credit markets”.
“[This] It is achievable in the next 10+ years,” Allaire said.
The $162 billion stablecoin market currently accounts for 0.2% of the $80 trillion coin market, according to World Population Assessment data.
Savings, money market, and checking accounts account for $26.4 trillion, $25 trillion, and $23.6 trillion, respectively, with the remaining $5 trillion coming from mints.
In order for Alaire's 10% forecast to come true by 2034, the stablecoin market would need to grow at a compound annual growth rate of at least 47.7%, even if the estimate is not at the $80 trillion level of growth.
USD Coin (USDC) – the United States dollar stablecoin at the Alair Circle – currently has a market cap of $32.8 billion, making it the second largest stablecoin behind Tether (USDT), CoinGecko data shows.
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Alaire's bullishness is not limited to the stable coin market.
Cryptocurrency adoption is likely to increase from “millions of users” to “billions of users” over the next 10 or so years, with many more trades and finances taking place via smart contracts on public blockchain infrastructure.
In fact, he thinks some onchain firms could outpace some multinational corporations in that time frame — though he didn't elaborate on how or in what sectors.
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