Circle’s USDC chief executive reveals his “extraordinary long-term” outlook for the digital asset industry.
Circle CEO Jeremy Allaire said in a recent interview with Anthony Pompliano that stablecoins would slowly encroach upon the electronic currency held by the banks over time.
Allaire compares the use of stablecoins with online video and the traditional broadcasting system to cable television. He notes that online video has only recently begun to affect the number of viewing hours for the former.
You have a market for legal electronic currency of around $100 trillion. The majority of this is electronic money intermediated by banks, so I believe full-reserve stablecoins that have internet-scale utility and programmability are going to take an increasing share over time.
In 10 years, it would be amazing and very possible to have 5% of global electronic money as stablecoins.
Allaire says that stablecoins can help reduce the marginal costs of moving money to almost zero. This is similar to how the internet utilities have reduced the cost to store and move information in the past.
I believe that the same principle (that is applicable to the storing and movement of information) will apply to blockchain networks and to stablecoins.
When the marginal cost for storing and moving value [approaches zero], the velocity of the money will increase by orders of magnitude, and the demand of that system will be far greater than it was in the past.
“I don’t really know what it means, but I do know that we have restructured how the economics work.”
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Circle CEO Jeremy Allaire unveils ‘extraordinary’ long-term crypto prediction – here’s his outlook may be updated as new information becomes available.
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