CEO Circle: the share of stablecoins will be 10% of the total money supply by 2034
Date: 2024-06-21 Author: Henry Casey Categories: CRYPTO PAYMENTS
Circle CEO Jeremy Allaire has made a bold statement about the future of stablecoins. He predicted that in the next ten years their share will be 10% of the total money supply. In a post on the social network X (formerly Twitter), Allaire expressed confidence in the rapid growth and integration of stablecoins into the global financial system.
Allaire noted the rapid adoption of stablecoins among large payment companies. He emphasized that to achieve the forecast, the stablecoin sector must grow by 47.7% annually, excluding the increase in the global money market. This growth rate is possible due to ongoing technology developments and increased adoption of digital assets.
Early stages of implementation
The head of Circle emphasized that the cryptocurrency industry is still in the early stages of adoption. However, it has already managed to form a significant community and achieve significant technological advances. Allaire believes that digital assets are on the cusp of mass integration into the global financial system.
Allaire also spoke about the variety of use cases for blockchain technologies. He noted that new and exciting applications are emerging every week, from payments to social media, gaming, ticketing and enterprise solutions. The scale of this progress, he said, far exceeds the achievements of a decade ago, indicating the growing power and importance of open Internet infrastructure.
Forecast for 2034
According to Allaire, by 2034 stablecoins will account for 10% of the global money supply. This will be possible through the acceptance of such assets by large payment systems and the development of appropriate regulatory frameworks in various countries. He also suggested that fourth-generation blockchains will be used by billions of people, and millions of applications will appear on the networks themselves.
Current data and market capitalization
According to a report from CCData, the market capitalization of stablecoins reached a two-year high after eight months of continuous growth, exceeding $161 billion at the end of May 2024. Analysts estimate the size of the global money market to be around $80 trillion, meaning stablecoins make up about 0.2% of that figure.
To reach the levels Allaire predicted, stablecoins would need to grow at an average annual rate of 47.7%. In this case, one should take into account a possible increase in the global money supply. Jeremy Allaire's statement underscores confidence in future growth and the importance of stablecoins to the global financial system.
In addition to its forecasts, Circle also increased its headcount by 15%, indicating the company's growing confidence in the continued development of the stablecoin and cryptocurrency industry as a whole.
