The CEO of Circle, the issuer of USDC, shared his optimistic long-term perspective on the digital assets industry.
During a recent interview with investor Anthony Pompliano, Jeremy Allaire, the CEO of Circle, predicted that stablecoins will gradually challenge the dominance of electronic money held by traditional banks.
Allaire drew a comparison between stablecoins and online videos, likening banks to traditional cable broadcast. He emphasized that it took many years for online videos to make a significant impact on the viewership of traditional cable TV.
“The current total addressable market for legal electronic money is around $100 trillion, mostly in the form of bank-intermediated electronic money. I believe that full-reserve stablecoins with internet-scale utility and programmability will capture a larger share of this market over time…
If stablecoin money accounts for 5% of the global electronic money market in 10 years, that would be remarkable and achievable.”
Allaire also highlighted that stablecoins will contribute to reducing the marginal cost of fund transfers to almost zero, similar to how internet technology reduced the cost of storing and moving information in the past.
“I anticipate that the economics of blockchain networks and stablecoins will follow a similar trend. The decreasing marginal cost of storing and moving value will significantly increase the velocity of money, surpassing the demand seen in the traditional system…
I can’t predict the exact implications, but I know it will expand the total addressable market for money by restructuring the economic dynamics.”
Don’t Miss a Beat – Subscribe to receive email alerts directly to your inbox
Check Price Action
Follow us on X, Facebook and Telegram
Explore The Daily Hodl Mix
Featured Image: Shutterstock/DRN Studio