Expert predicts stablcoin market to grow to $1 trillion by 2025
Stable currencies will grow from today's $115 billion to $1 trillion by 2025, and the current regulatory uncertainty won't derail this. That's the prediction made by early crypto-enthusiast and head of decentralized domain registrar Unstoppable Domains Matthew Gould in an interview with Business Insider.
He did not rule out that the momentum would exceed his expectations because of the popularisation of DeFi applications.
"The pace could be even higher. The larger the audience of Stablecoins, the more users of the decentralised finance sector," said the specialist.
During the interview, Gould also touched on the inherent risks of stable currencies - loss of reference to the underlying asset and volatility.
"With this growth, these issues are inevitable. You shouldn't call yourself a $1 coin if you don't have $1 in your bank account," the expert stressed.
Gould is optimistic about the future. He is convinced that the removal of regulatory uncertainty and growing competition will gradually neutralise these risks. He cited USD Coin (USDC) as an example, with its issuer seeking to fully comply with government requirements.
The expert was not so optimistic about bitcoin in the medium term. Gould gave the first cryptocurrency at least a year to return to its all-time high.
"I see a corridor to the end of the year. In my experience, it takes a year or two of consolidation after a 50% crash," the CEO of Unstoppable Domains stressed.
Recall that in July, US Treasury Secretary Janet Yellen called for an early regulatory framework for stablocoins.
The head of the US Federal Reserve (Fed), Jerome Powell, questioned the need for Stablecoins. He compared stablecoins to money market funds and savings banks.
Boston Fed President Eric Rosengren said in June that stablcoins threaten the financial system. The agency's vice-chairman Randal Quarles called for stablecoins not to be feared.
Earlier, a study by Yale economist Gary Gorton and Fed lawyer Geoffrey Zhang was released. They predicted a return of the US to the 19th century era of "wild banking" in the absence of proper regulation of stablcoins.