Markets
Stablecoins on track to conquer 10% of the money market
3:06 p.m. ▪ 3 min reading ▪ by Fénelon L.
Mass adoption of stablecoins could redefine global payments and the economy in the years to come, according to Circle CEO. This transition would disrupt traditional financial systems by promoting inclusion and efficiency.
Stablecoins, engines of the future monetary revolution?
Jeremy Allaire, CEO of Circle, makes a bold prediction: by 2034, stable coins could represent up to 10% of the world’s money supply. An ambitious but achievable projection given the catalysts already driving the rapid adoption of this crypto asset class.
The irresistible rise of digital payments is one of these key factors. According to Allaire, the main payment companies are actively studying the integration of stablecoins, attracted by the advantages of blockchain technology.
“Most of the world’s largest payment companies are actively using this technology and are exploring how to expand their use as the benefits of public chains and stablecoins become clear to everyone. »
Their practicality for cross-border payments and financial inclusion of unbanked populations are major enablers. The addressable market is worth billions of dollars.
With a current market capitalization of $162 billion, stablecoins represent just 0.2% of the $80 trillion global money market. But according to Allaire’s projections, their share is expected to increase significantly by the end of 2025 as they establish themselves as an important form of crypto.
A promising future for Stablecoins and the entire cryptocurrency market
To reach the forecast of 10% by 2034, the stablecoin market will need to post a minimum compound annual growth rate of 47.7%. A daunting challenge, but achievable given recent exponential adoption.
Record monthly volumes of stablecoin transfers, increasing 16-fold in just 4 years to reach $1.68 trillion in April 2024, reinforce these promising prospects.
Beyond stablecoins, Allaire sees crypto adoption exploding within 10 years to billions of users across millions of applications. It does not even exclude that some blockchain companies could outperform traditional multinationals.
A monetary and economic revolution to follow closely with optimism according to the CEO of Circle. A bold vision that could sustainably transform the established financial systems.
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Fenelon L.
Passionate about Bitcoin, I like to explore the intricacies of blockchain and cryptos and I share my discoveries with the community. My dream is to live in a world where privacy and financial freedom are guaranteed for everyone, and I firmly believe that Bitcoin is the tool that can make this possible.
DISCLAIMER
The views, thoughts and opinions expressed in this article belong solely to the author and should not be considered investment advice. Do your own research before making any investment decisions.