Jeremy Allaire, CEO of Circle, the company behind the USDC stablecoin, believes that stablecoins will slowly but surely take over a significant portion of the global financial market. He compares this to the rise of online video streaming over traditional cable television, a shift that took decades to fully materialize.
Stablecoins: A New Era of Money
Allaire predicts that stablecoins will eventually become a major player in the $100 trillion global electronic money market, currently dominated by banks. He believes that within the next decade, stablecoins could account for 5% of this market, a significant shift that would revolutionize the way we handle money.
Lowering Costs, Increasing Velocity
Allaire argues that stablecoins will drastically reduce the cost of moving money, similar to how the internet lowered the cost of storing and moving information. This, he says, will lead to a massive increase in the “velocity of money,” meaning money will move faster and more efficiently through the economy.
A Bigger Pie
This shift, according to Allaire, will actually expand the overall market for money, as the lower costs and increased efficiency will create new opportunities and drive greater demand.
While the exact impact of this shift remains to be seen, Allaire believes that stablecoins are poised to play a major role in the future of finance.
