Author: Brayden Lindrea, CoinTelegraph; Translated by: Wuzhu, Jinse Finance
Jeremy Allaire, CEO of stablecoin issuer Circle, said stablecoins could account for 10% of "currency in the global economy" over the next decade or more.
That’s arguably a bold statement, but Allaire points to several factors that could spark exponential growth in stablecoin adoption over the next “10+ years.”
“As the benefits of public blockchains and stablecoins become known, most of the world’s largest payment companies are actively using the technology and exploring how to expand its use,” Allaire explained in a June 19 X post.
With a potential market size of “billions of dollars,” unleashing a digital dollar on a blockchain could deliver on the promise of banking the unbanked, lowering the cost of remittances and enabling seamless cross-border trade, Allaire said.
Source: Jeremy Allaire
He noted that stablecoins are becoming an increasingly accepted form of digital currency and will account for a “larger and larger share” of the $100 trillion global electronic money market by the end of 2025.
“What will it look like when 10% of the global economy’s currency is stablecoins and credit intermediation shifts from fractional reserve lending to on-chain credit markets?”
“[This is] achievable in the next 10-plus years,” Allaire said.
Data from World Population Review shows that the current $162 billion stablecoin market accounts for 0.2% of the $80 trillion currency market size.
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 would need to grow at a compound annual growth rate of at least 47.7%, although this estimate does not take into account the growth of the $80 trillion market size.
CoinGecko data shows that the USD Coin, a US dollar stablecoin issued by Allaire's Circle, currently has a market value of US$32.8 billion, making it the second largest stablecoin after Tether.
USDC, USDT, PayPal USD (PYUSD), and USDP stablecoin (USDP) trading volumes since January 2023. Source: Visa
Allaire’s optimism isn’t limited to the stablecoin market.
Over the next 10 years or more, cryptocurrency adoption could grow to “billions of users” and “millions of applications,” while more commerce and finance will be conducted through smart contracts on public blockchain infrastructure.
He even suggested that some on-chain organizations could outperform some multinational corporations during this time — though he did not elaborate on how and in which areas.
