Circle CEO Jeremy Allaire says the stablecoin industry will thrive in the coming years.
In a new interview with CNBC Television, Allaire says the modern features of stablecoins will ensure the industry sees explosive growth in the coming years as demand for online digital dollars rises.
“Digital dollars that can be a strong store of value, a medium of exchange that has all the powers of the internet – that’s what dollar stablecoins do. Huge innovation [that] I expect explosive 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 is something very important and that is different from people who want a currency hedge, so to speak, or a hedge of value hedge.”
According to Allaire, many investors are turning to digital assets – including Bitcoin (BTC) – as a hedge against risk, suggesting the emerging industry is here to stay. However, he notes that BTC cannot tick all the boxes when it comes to investor needs.
“Digital commodities are here to stay… and they will be valued differently. Gold is valued differently than oil, which is valued differently than copper. So there will be digital commodities.
Bitcoin in particular is the largest digital commodity asset and I think in the minds of many people who invest in it, it is a risk hedge asset. It can correlate with the availability of money, but it can also be uncorrelated, so it clearly doesn’t fit every box.”
Bitcoin is trading at $41,932 at the time of writing, a gain of 2.13% over the past 24 hours.
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