Circle Internet Financial Ltd. founder Jeremy Allaire took to X to reiterate his optimism towards crypto, particularly stablecoins. In his long post, he confirmed he is more bullish about the ecosystem now more than ever.
Stablecoin Takes 10% of Global Economic Money
Allaire took a run-down of how far the crypto industry has come within the last couple of years.
He analyzed the inventions that the ecosystem has seen during this time including the creation of Bitcoin (BTC). The Circle founder highlighted stablecoins and how they have come to own a section of the financial ecosystem, citing that they have exploded in both scale and use.
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
As Allaire put it, stablecoins have contributed to unleashing digital dollars in the world. There use has brought more people into the future on-chain economy, and starting to fulfill the promise of banking the unbanked. Additionally, stablecoins are fueling lower costs of remittances while unlocking more seamless cross-border commerce.
This type of digital currency is fast becoming the legally defined and accepted form of money across different jurisdictions. Allaire took his stablecoin talk a step further by predicting that it would become legal electronic money globally by 2025. On such scale, stablecoins could represent approximately 10% of global economic money. To this end, he posed a question to his readers.
“What does it look like when 10% of global economic money is stablecoins, and when credit intermediation moves from fractional reserve lending to onchain credit markets built from the ground up on safer, digital cash instruments (e.g. stables), and opens up credit and debt to the long tail of supply and demand in the same way that Amazon did for commerce and AdWords did for advertising?”
Stablecoins Adoption Sees More Traction
Allaire is positive that in the next ten years, his predictions will come to pass. He draws his optimism from how much has been achieved already, citing that a lot more could happen in a decade.
True to Allaire’s statement, stablecoins have performed better than some other digital assets with USDT and USDC leading the ecosystem. Gradually, organizations are turning their focus to stablecoins. Paxos recently cuts 20% of its workforce to focus on stablecoins and asset tokenization, despite a strong financial position with over $500 million in assets.
Also, governments are putting structures in place in terms of regulation to accommodate this new era of stablecoins.
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Benjamin Godfrey is a blockchain enthusiast and journalists who relish writing about the real life applications of blockchain technology and innovations to drive general acceptance and worldwide integration of the emerging technology. His desires to educate people about cryptocurrencies inspires his contributions to renowned blockchain based media and sites. Benjamin Godfrey is a lover of sports and agriculture. Follow him on Twitter, Linkedin
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