Jeremy Allaire emphasized the growing role of such assets as an alternative to unavailable banking services in many regions

Circle CEO: Stablecoins will take 10% of the global money market by 2034

20.06.2024 - 12:15

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4 min

What's new? The head of Circle, which issues the second most capitalized USDC stablecoin, expects exponential growth in the adoption of stablecoins over the next ten years. According to Jeremy Allaire, during this period, the share of stablecoins in the global economy will reach 10%. He added that in all his years at the company, “at no time has he been more optimistic than right now.” In favor of his forecast, he provided several arguments emphasizing the growing popularity of the sector.

Source: X.com

What else is known? Allaire noted that a decade ago, the cryptocurrency industry was extremely marginalized, and blockchain technology itself was slow, expensive and difficult to operate. Financial institutions refused to enter this market, and the media covered mostly news related to cryptocurrency darknet marketplaces.

Now, the third generation of blockchain infrastructure provides global decentralized networks capable of supporting large-scale applications and providing reliable, high-speed and confidential transactions. Breakthrough zero-knowledge proof (ZK) and fully homomorphic encryption (FHE) technologies have recently gained popularity:

“Crypto computing becomes the basis for most significant and important applications.”

As Allaire writes, digital assets have become an accepted part of the global financial system, and bitcoin has become one of the largest and most important alternative investment assets. Major investment companies offer blockchain-based products and services, and governments are seeking to establish clear rules for the issuance, use and trading of cryptocurrencies:

“Crypto has become a global political issue, as its importance to national competitiveness becomes clear.”

He also noted that the world's leading payment companies are actively using blockchain technology as the benefits of public networks and stablecoins are becoming obvious to everyone.

Nevertheless, the top manager believes that now we are only at the very early stages of the global introduction of cryptocurrencies:

“Crypto seems like it's on the cusp of catapulting society and the economy forward in tremendously powerful new ways.”

Separately, the head of the USDC issuer commented on the situation with stablecoins. According to him, such assets are rapidly gaining popularity and involving more and more users in the crypto economy, as they represent an alternative to banking services unavailable in many regions, providing low transaction costs and uninterrupted cross-border trade.

“Stablecoins are becoming a legally defined and accepted form of digital money in nearly every major jurisdiction in the world. By the end of 2025, stablecoins will be “legal electronic money” almost everywhere, which sets them up to become a larger and larger portion of the $100T+ market for electronic money,” Allaire believes.
Circle CEO allows the possibility of passing laws to regulate stablecoins in the United States this year

Circle CEO allows the possibility of passing laws to regulate stablecoins in the United States this year

Last year, the bill to regulate payment stablecoins was approved by the specialized committee of the lower house of Congress

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According to the top executive, 10% of “global economic money” will be represented by stablecoins, credit intermediation will move to onchain markets, and the number of crypto users could grow to billions of people across millions of applications. Allaire believes this goal could be achieved within a dozen years or more.

According to World Population Review, the $162 billion stablecoin market is currently 0,2% of the $80 trillion money market.

For Allaire's 10% prediction to come true by 2034, the stablecoin market would have to grow at least at a compound annual rate of 47,7%, though that estimate doesn't take into account the growth of the money market itself over the same period.

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