Circle CEO: Stablecoins to Make 10% of Total Money Supply in Next Decade

UTC by Bhushan Akolkar · 2 min read
Circle CEO: Stablecoins to Make 10% of Total Money Supply in Next Decade
Photo: MoneyConf / Flickr

Circle CEO Jeremy Allaire stated that deploying digital dollars on blockchains could deliver on the promise of banking the unbanked, reducing remittance costs, and enabling seamless cross-border commerce.

Circle CEO Jeremy Allaire is absolutely bullish about the growing adoption of stablecoins stating that this asset class could account for “10% of the global money” in a decade from now. While making this bold claim, Allaire also pointed out several factors that could trigger a major explosion in the adoption of stablecoin over the next ten years.

As such, several market analysts are already expecting the stablecoin market to touch the trillion-dollar milestone by 2030. Staying bullish on these lines, Allaire explained in an X post on June 19 stating:

“Most of the world’s largest payments companies are actively using this technology and exploring how to expand their usage as the benefits of public chains and stablecoins become apparent to everyone.”

According to Allaire, the addressable market size is in the “billions”. Deploying digital dollars on blockchains could deliver on the promise of banking the unbanked, reducing remittance costs, and enabling seamless cross-border commerce.

The Circle CEO further added that there’s a growing acceptance of stablecoins as a form of digital money. Thus, he expects stablecoins to become make up a “larger and larger portion” of the world’s $100 trillion market for electronic money by the end of 2025. Allaire wrote:

“What does it look like when 10% of global economic money is stablecoins and when credit intermediation moves from fractional reserve lending to onchain credit markets. [This] is achievable over the next 10+ years.”

The Growing Size of Stablecoin Market

Currently, the size of the global stablecoin market is $162 billion which is just 0.2% of the $80 trillion money market. As per the data provided by World Population Review, the savings, money market, and checking accounts contribute about $26.4 trillion, $25 trillion and $23.6 trillion, individually. the rest of $5 trillion comes from mints.

If Allaire’s prediction that stablecoins will contribute 10% of the global money market, has to come true, the stablecoin market must compound in size with an annual growth rate of 47.7%. Note that, the estimate doesn’t factor in the growth of the $80 trillion money market.

Circle’s USDC stablecoin currently boasts a market cap of $32.8 billion, thereby making it the second-largest stablecoin after Tether USDT which has a market cap of $112 billion.

Allaire’s optimism extends beyond the stablecoin market. He envisions cryptocurrency adoption growing to “billions of users” across “millions of applications” within the next decade or more, with a significant portion of commerce and finance being conducted through smart contracts on public blockchain infrastructure.

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