Circle CEO Predicts 10% Share of Global Money by 2034
The future of money might hold a surprising ingredient: stablecoins. According to Jeremy Allaire, CEO of stablecoin issuer Circle, these digital assets could make up a significant portion of the global financial landscape within a decade.
Allaire’s claim is audacious, envisioning a tenfold increase in stablecoin adoption over the next “10+ years.” However, he outlines several factors that could fuel this exponential growth.
“Major payment companies are actively exploring stablecoins,” Allaire explains. As the advantages of public blockchains and stablecoins become more widely understood, their adoption is poised to accelerate.
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
Stablecoins offer a compelling solution for the “billions” who lack access to traditional banking systems. Lower remittance fees and seamless cross-border transactions could revolutionize financial inclusion.
Allaire emphasizes the growing acceptance of stablecoins as a legitimate form of digital money. He predicts stablecoins will comprise a progressively larger share of the $100 trillion global electronic money market by 2025.
Vision for a Decentralized Future
Allaire ponders the implications of a world where 10% of global financial resources reside in stablecoins, with credit intermediation transitioning from fractional-reserve lending to on-chain credit markets. He believes this future can be achieved within the next decade.
Currently, the $162 billion stablecoin market represents a mere 0.2% of the vast $80 trillion money market. Breaking down this market, savings accounts hold $26.4 trillion, followed by money market accounts at $25 trillion and checking accounts at $23.6 trillion. Mints contribute the remaining $5 trillion.
To reach Allaire’s 10% target by 2034, the stablecoin market would require a compounded annual growth rate (CAGR) exceeding 47.7%. This calculation doesn’t account for potential growth within the broader $80 trillion money market.
USD Coin Leads the Pack
USD Coin (USDC), the US dollar stablecoin issued by Circle, currently holds the number two spot with a $32.8 billion market cap, trailing only Tether (USDT) according to CoinGecko data.
Allaire’s optimism extends beyond the stablecoin market. He envisions cryptocurrency adoption reaching “billions of users” across “millions of applications” within the next decade. He foresees a future where smart contracts on public blockchains power a significant portion of global commerce and finance.
Allaire goes even further, suggesting certain “onchain organizations” could outperform multinational corporations in the coming years. While he doesn’t elaborate on specific sectors or mechanisms, his prediction paints a picture of a potentially transformative future driven by blockchain technology.