According to "Cointelegraph", Jeremy Allaire, CEO of stablecoin issuer Circle, believes that stablecoins may account for 10% of "global economic currencies" in the next ten years or more. He pointed out that stablecoin adoption may be in the next ten years. Several factors have contributed to the exponential expansion over the past few years.
Allaire explained on the X platform on Wednesday (19th):
“As the advantages of public chains and stablecoins gradually emerge, most of the world’s largest payment companies are actively using this technology and exploring how to expand its use.”
Allaire said the addressable market is in the "billions" and that unleashing digital dollars on the blockchain could fulfill the promise of banking the unbanked, lowering the cost of remittances and allowing seamless cross-border commerce. He noted that stablecoins are becoming an increasingly accepted form of digital currency and will account for "an increasing share" of the $100 trillion global electronic currency market by the end of 2025.
Allaire writes, What will it look like when 10% of the global economy’s currency is in stablecoins, and when credit intermediaries shift from fractional reserve lending to on-chain credit markets? He believes that "all of this can be achieved in the next ten years or so."
Source: Jeremy Allaire
The current total market capitalization of stablecoins is $162 billion, which according to data from the World Population Review, accounts for only 0.2% of the $80 trillion currency market.
Savings, money market, and checking accounts are approximately $26.4 trillion, $25 trillion, and $23.6 trillion respectively, with the remaining $5 trillion being the money base (M0). According to reports, to achieve Allaire’s 10% prediction by 2034, the stablecoin market will need to grow at least a 47.7% compound annual growth rate, but this estimate does not take into account the growth of the $80 trillion currency market.
Billions of users are envisioned to adopt blockchain networks
Allaire’s optimism isn’t limited to the stablecoin market either. He believes that in the next 10 years or more, cryptocurrency adoption may increase to "billions of users" involving "millions of applications" and more commercial and financial operations will be conducted through public blockchains. Smart contracts are executed on the chain infrastructure.
Allaire even believes that some on-chain organizations may outperform some multinational companies during this time - although he did not elaborate on how and in what areas.
Data from CoinGecko shows that USD Coin (USDC), the U.S. dollar stablecoin issued by Circle, currently has a market capitalization of approximately $32.8 billion and is the second largest stablecoin after Tether (USDT).
This article Circle CEO: Stablecoin market expected to account for 10% of global currencies in the next decade or so appeared first on Zombit.
