Circle CEO: By 2025, stablecoins could be recognized by most jurisdictions and become 10% of the global economy's electronic currency

Circle's CEO Jeremy Allaire has expressed optimism about the future of cryptocurrency. Throughout his 11 years of building Circle, Allaire believes that most people have limited understanding of the significant developments in the current crypto space. His optimism stems from observing the evolution of Internet technology over the past 35 years and realizing the potential of cryptocurrencies for societal and economic transformation. He believes that in the future, 10% of the global economy will be mediated by stablecoins.

I’m more bullish than I have ever been about crypto.

I have been building @Circle for over 11 years, and at no time have I been more optimistic than right now.

I also believe that the overwhelming majority of people have an extremely narrow and limited understanding of what’s…

— Jeremy Allaire (@jerallaire) June 19, 2024

Having overcome early skepticism

He noted that in 2013, the concept of cryptocurrency was considered fringe and often associated with illicit activities. Despite limited, slow, and complex technology, Allaire and other early adopters saw the potential of a decentralized network. They faced hostility from financial institutions and skepticism from the media, but their vision for the transformation of digital infrastructure remained clear.

Entering the broadband phase, Bitcoin has become a significant target

He believes that today, public blockchain infrastructure has evolved to the third generation, supporting large-scale applications with trusted data, transactions, and computations. A thriving global blockchain network community is continuously innovating, improving data availability, security, privacy, and transaction throughput. Allaire compares the current state of blockchain to the early broadband phase and anticipates significant progress in the future.

Recent breakthroughs in security, privacy, and scalability, such as zero-knowledge technology ZK and fully homomorphic encryption FHE, indicate that encrypted computing will support major applications. Thousands of startups globally are building on this infrastructure, further solidifying the role of digital assets in the emerging global financial system. Major governments are establishing clear regulations for digital assets, and Bitcoin has become an important alternative investment asset.

Continuous global acceptance

He believes that the world's largest asset management companies now offer blockchain-based products, and cryptocurrencies have become a global political issue. Governments worldwide are competing to promote innovation while ensuring responsible development. Improved user experiences make cryptocurrencies more accessible, and major payment companies are integrating blockchain technology to enhance their services.

Stablecoins are on the rise and will be recognized by most jurisdictions next year

He believes that stablecoins have become a clear killer application, providing a digital dollar to drive the online economy. They are beginning to enable future banking services, reduce remittance costs, and facilitate seamless cross-border commerce. By 2025, stablecoins are expected to be legally recognized as electronic currencies in almost all major jurisdictions, potentially occupying a significant share of the $100 trillion electronic currency market.

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Progress in blockchain infrastructure

He believes that the infrastructure for building, deploying, and operating blockchain applications has significantly advanced. Enterprise-grade products and services now support these networks, providing custody solutions suitable for end-user self-custody and institutional use. Developer tools and knowledge are continually expanding, allowing more people to access blockchain technology.

Widespread adoption

He believes that retail companies are launching applications that connect to public chains and use digital tokens, covering payments, social, gaming, ticketing, and enterprise use cases. National governments are investing in blockchain infrastructure and ecosystem development, incentivizing innovation through legislation. Exciting new applications are gaining attention every week.

The road ahead

Allaire believes we are still in the early stages of cryptocurrency adoption, which makes him very optimistic about the future. He envisions a world where digital tokens are widely understood and used legitimately for incentives, governance, and record-keeping. With the evolution of blockchain networks, they will support billions of users and millions of applications, revolutionizing finance, commerce, and governance.