RE: LeoThread 2024-10-24 14:48
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@taskmaster4450le how is this Format
Circle's Allaire: Stablecoins Could Expand by Trillions in 10 Years, Will Be Integral Part of Global Financial System
Jeremy Allaire, CEO of Circle, predicts that stablecoins could capture 5%-10% of the global money supply in the next decade. With a $100 trillion global market, this could mean a $5-$10 trillion stablecoin market by 2034. The growth is fueled by stablecoins bridging traditional finance and blockchain, allowing faster transactions and lower costs, especially in regions with unstable currencies.
#Crypto #Stablecoins #Blockchain #Fintech
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Stablecoins like USDC (USD Coin) are pegged to stable assets, making them less volatile than cryptocurrencies like Bitcoin. They are already popular for payments, remittances, and trading. As blockchain adoption grows, stablecoins could bring financial services to millions of unbanked people worldwide, making transactions cheaper and more efficient.
Currently, USDT (Tether) dominates with a $120 billion market cap, while USDC has grown to around $35 billion. Tether’s success is partly due to its focus on emerging markets, where access to USD is limited. In contrast, USDC is more popular in developed markets. However, Circle is expanding USDC’s reach in places like Latin America and Southeast Asia, where it's being adopted for cross-border payments.
There are growing examples of stablecoin use cases. One notable case involves a large energy trade between the Middle East and Africa, settled with USDC. Additionally, Stripe, a major payment processor, recently added USDC as a payment option, and within 24 hours, users from 70 countries chose this method. This shows the increasing relevance of stablecoins in global commerce.
Stablecoin regulation is a priority for global financial bodies. Allaire noted that by the end of 2025, many G20 countries and emerging markets will have stablecoin regulations in place. In the U.S., bipartisan support exists for the Payment Stablecoin Act, which could bring more clarity to the regulatory environment. Regulation will be crucial for stablecoins to achieve mainstream
Circle plans to go public despite uncertainties surrounding U.S. crypto regulations. Allaire believes a public listing will boost transparency and trust. Although the U.S. elections could affect the timing, the company remains focused on complying with evolving regulations to ensure its success in a regulated environment.
The stablecoin market would need a compound annual growth rate of nearly 48% over the next decade to reach Allaire’s prediction. This ambitious growth is driven by increasing digital payment adoption, a shift towards blockchain-based credit markets, and broader financial digitalization. Asset tokenization and smart contracts could further accelerate this trend.
If stablecoins reach a 10% share of the global economy, they could redefine financial transactions. Blockchain-based credit markets could replace traditional banking's fractional reserve lending, making loans more transparent and efficient. This shift would be comparable to how e-commerce transformed retail, potentially leading to billions of users engaging with blockchain-based financial services.
Looks excellent to me. That is how I do it.
Some prefer just the headline and a link but I think having the short paragraph helps a great deal. It also aids in providing more data for #leoai.
This could be a very popular threadcast since Crypto is so popular on threads. Commit to it each day and I think it will serve you well.
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