Circle CEO Jeremy Allaire says that the stablecoin industry is set to flourish in the coming years.
In a new interview with CNBC Television, Allaire says that the modern features of stablecoins will allow the industry to see explosive growth over the next few years as demand for online digital dollars rises.
“Digital dollars that can be a strong store of value, a medium of exchange that have all the powers of the internet – that’s what dollar stablecoins do. Huge innovation [that] I expect to be explosive in terms of its growth in the coming years. Just a huge utility for dollars on the internet.
[There’s a] huge appetite for dollars on the internet. That’s a very big thing and that’s distinct from people who want a currency hedge so to speak, or a store-of-value hedge.”
According to Allaire, many investors are turning to digital assets – including Bitcoin (BTC) – as a hedge against risk, suggesting that the nascent industry is here to stay. However, he notes that BTC can’t check off every box in terms of investors’ needs.
“Digital commodities are here to stay… and they will be valued differently. Gold is differently valued than oil, which is differently valued than copper. So there will be these digital commodities.
Bitcoin, specifically, is the sort of largest digital commodity asset and I think in the minds of many of the people investing into it, this is a risk hedge asset. It can be correlating to the availability of money supply but it can also be uncorrelated, so it doesn’t fit every box, clearly.”
Bitcoin is trading for $41,932 at time of writing, a 2.13% gain during the last 24 hours.
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