Circle CEO Jeremy Allaire recently made statements about the future of stablecoins, claiming that they could account for 10% of money in the next decade. This prediction is considered bold, but Allaire pointed to several factors that could lead to an exponential expansion in stablecoin adoption in the coming years.
Key factors for stablecoin adoption
Allaire pointed out that the biggest payment companies are already active in stablecoins and are exploring new ways of using the technology. He also noted that stablecoins are becoming increasingly accepted as a form of digital currency, and will account for a growing share of the $100 trillion e-money market by 2025.
Growth of the stablecoin market
For Allaire’s prediction to come true, the stablecoin market would have to grow at a compound annual growth rate of at least 47.7% by 2034. Currently, the stablecoin market represents 0.2% of the $80 trillion currency market, according to data from World Population Review.
Prospects for the future of the cryptocurrency industry
Allaire isn’t just optimistic about the future of stablecoins. He believes that cryptocurrency adoption could reach billions of users and millions of applications in the coming years, with much commerce and finance being executed by smart contracts on public blockchain infrastructures. He even believes that some blockchain organizations could outperform some multinationals in the coming years.
