Over the next ten years or more, stablecoins might represent 10% of “global economic money,” said Circle CEO Jeremy Allaire. Allaire highlighted in a June 19 X post numerous elements that may cause a notable increase in stablecoin acceptance.

“Most of the biggest payments companies in the world are actively using this technology and investigating how to expand their usage as the benefits of public chains and stablecoins become evident to everyone,” Allaire said.

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Exponential Growth Potential

Emphasizing that the potential market size is in the billions, Allaire underlined how digital currency on blockchains may assist bank the unbanked, reduce remittance costs, and enable smooth cross-border trade. By the end of 2025, he expects stablecoins—which might account for a “larger and larger portion” of the $100 trillion global electronic money market—to be widely acknowledged as a kind of digital money.

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“What would it look like if 10% of world economic wealth were stablecoins and credit intermediation shifted from fractional reserve lending to onchain credit markets? [This] is within reach over the next ten plus years, Allaire said.

Current Market and Future Predictions

Based on World Population Review statistics, the $162 billion stablecoin industry now represents just 0.2% of the $80 trillion money market. Not including the expansion of the whole money market, the stablecoin market would have to develop at a compounded annual growth rate of 47.7% if Allaire’s 10% projection comes to pass by 2034.

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Based on CoinGecko statistics, USD Coin (USDC), the stablecoin created by Circle, has a $32.8 billion market valuation second only to Tether.

Broader Cryptocurrency Adoption

The hope of Allaire transcends stablecoins. In the next decade, he sees the acceptance of cryptocurrencies rising to “billions of users” spread throughout “millions of applications.” Using smart contracts on public blockchain infrastructure, he expects much more trade and finance to be conducted. Though he did not name the industries or tools for this transition, Allaire also thinks certain onchain companies might surpass global firms in the next years.

Allaire’s forecasts show the possibility for notable expansion and the transforming effect of blockchain technology on world banking as the stablecoin and larger cryptocurrency markets develop.

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