Stablecoins will represent 10% of money in the next 10 years: Circle CEO
According to Jeremy Allaire, CEO of stablecoin issuer Circle, stablecoins could account for 10% of “global economic capital” over the next decade or more.
While this is admittedly a bold claim, Allaire pointed out several factors that could lead to stablecoin adoption expanding exponentially over the next “decade or more.”
“Most of the world’s largest payments companies are actively using this technology and are looking to expand their usage as the benefits of public chains and stablecoins become clear to everyone,” Allaire wrote in a June 19 X post. .” he explained.
The addressable market size is in the “billions”, he said, and launching a digital dollar on blockchain could deliver on the promise of banking the unbanked, lowering the cost of remittances and enabling seamless cross-border commerce. Allaire said.
He noted that stablecoins are becoming an increasingly accepted form of digital currency, and that by the end of 2025, stablecoins will account for “an increasingly larger portion” of the world’s $100 trillion electronic money market.
“What will it look like when 10% of the global economy’s funds are stablecoins and credit intermediation moves from fractional reserve lending to on-chain credit markets?”
“(This) is achievable over the next 10 years or more,” Allaire said.
According to World Population Review data, the $162 billion stablecoin market is currently only 0.2% of the $80 trillion fiat market.
Savings, money market, and checking accounts account for approximately $26.4 trillion, $25 trillion, and $23.6 trillion, respectively, with the remaining $5 trillion coming from the Mint.
For Allaire’s 10% prediction to come true by 2034, the stablecoin market will need to grow at a CAGR of at least 47.7%. However, the estimate does not take into account the $80 trillion growth.
USD Coin (USDC), a US dollar stablecoin issued by Allaire’s Circle, currently boasts a market capitalization of $32.8 billion, making it the second-largest stablecoin behind Tether (USDT), CoinGecko data shows.
Related: Could stablecoin trading volume overtake Visa this quarter?
Allaire’s strength is not limited to the stablecoin market.
Cryptocurrency adoption could grow to “billions of users” across “millions of applications” over the next decade or more, with much more commerce and finance running through smart contracts on public blockchain infrastructure.
He even believes that some on-chain organizations may outperform some multinational corporations over that period. But he did not expand the methods and sectors.
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