Circle CEO predicts stablecoins will account for 10 of global currency in the coming decade

Stablecoins have the potential to represent 10% of the global economic money in the next decade or more, according to Jeremy Allaire, the CEO of stablecoin issuer Circle. Allaire listed several factors that could lead to a significant increase in the adoption of stablecoins over the next ten years. Many of the world’s largest payment companies are actively utilizing this technology and exploring ways to expand its usage as the benefits of public chains and stablecoins become more evident. The market for stablecoins is enormous, with the potential to fulfill the promise of banking the unbanked, reducing remittance costs, and facilitating seamless cross-border commerce. Allaire believes that stablecoins will make up a larger portion of the $100 trillion market for electronic money by the end of 2025, and he sees this as an achievable goal within the next decade. Currently, the stablecoin market is valued at $162 billion, which is only 0.2% of the $80 trillion money market. To reach Allaire’s prediction of 10% by 2034, the stablecoin market would need to grow at a compounded annual growth rate of 47.7%. However, this estimate does not take into account the growth of the $80 trillion money market. The United States dollar stablecoin, USD Coin (USDC), issued by Circle, currently has a market cap of $32.8 billion, making it the second largest stablecoin after Tether (USDT). Allaire’s optimism extends beyond the stablecoin market, as he believes that cryptocurrency adoption could increase to billions of users across millions of applications in the next decade or more. He also suggests that some onchain organizations could outperform multinational corporations in certain sectors, although he does not provide further details on how or in which sectors.