The CEO of USDC issuer Circle has given a “special” long-term outlook for the digital asset industry.
In a new interview with investor Anthony Pompliano, Circle CEO Jeremy Allaire says stablecoins will slowly erode the dominance of digital currencies held by banks over the years.
Allaire compared stablecoins to online video and banking to traditional cable TV, noting that it took decades for online video to significantly encroach on the latter’s viewing time.
“The total addressable market for legal tender is currently around $100 trillion. The vast majority of that is bank-brokered tender, so I believe that these fully reserve stablecoin currencies with internet-scale utility (and) programmability will take an increasingly large share over time…
“If within 10 years, 5% of the global cryptocurrency market were to be stablecoins, that would be amazing and very achievable.”
According to Allaire, stablecoins will help reduce the marginal cost of moving funds to virtually zero, similar to how Internet utilities of the past made it cost-effective to store and move information.
“I believe the same principles that apply to storing and moving information will also apply to blockchain networks and stablecoins.
The marginal cost of storing and moving value approaches zero, which will lead to an enormous increase in the velocity of money, and demand for it will be much greater than was seen in the traditional system.
I don’t know exactly what that means, but I know that the total addressable market for money is going to be much larger because it’s reconfiguring the actual economics of how this works.”
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