Reeve Collins, co-founder of Tether, predicts that by 2030, “all currency” will transition to stablecoins as part of a significant shift toward onchain finance.
“Every currency will be a stablecoin. Even fiat currencies will be classified as stablecoins, simply referred to as dollars, euros, or yen,” Collins stated during an extensive interview at Token2049 in Singapore.
“A stablecoin will essentially be a dollar, euro, or yen, or any traditional currency operating on a blockchain by 2030,” he elaborated.
Collins believes that stablecoins will dominate money transfers in the next five years, as the advantages of tokenized assets become too compelling for conventional finance to overlook.
“This might happen even sooner, as dollars will still be in use. However, it depends on how one defines stablecoin. Essentially, a stablecoin is about transferring money on a blockchain,” he added.
US crypto shift was the best thing to happen
Collins remarked that the most beneficial development for the crypto market this year was the positive “change in attitude” of the US government toward the sector.
He noted that many large traditional finance firms were hesitant to enter the industry due to fears of government oversight, but the landscape has changed significantly.
The Tether co-founder indicated that this shift has opened the “floodgates,” leading traditional finance to rush into the crypto sector, with blockchain-based stablecoins becoming a primary focus due to their inherent usefulness.
“Every major institution, every bank, desires to create their own stablecoin for its lucrative nature and efficiency in transactions. The floodgates are open, and soon there will be no distinction between CeFi and DeFi,” he stated.
“Applications will emerge that facilitate various functions: moving money, granting loans, and making investments, blending traditional investment styles with DeFi methods.”
The tokenization narrative is strong
Collins asserted that tokenized assets provide vastly improved transparency and efficiency over non-tokenized assets—allowing rapid global transfers without intermediaries—resulting in greater potential gains.
“This is why the tokenization narrative is so powerful; everyone understands the enhancement in utility gained from tokenized assets compared to non-tokenized assets is substantial. Once assets are moved onchain, the increase in utility translates to higher returns,” he explained.
Related: ‘Horse has left the barn:’ ETHZilla bets big on Ethereum’s stablecoin play
Downsides of going fully onchain
However, Collins recognized the risks associated with such a monumental shift in global finance, including the security concerns of blockchain bridges, smart contracts, and crypto wallets.
He pointed out that crypto hacks and social engineering are significant issues needing attention, although he affirmed that overall security levels are “improving.”
“The traditional trade-off will still apply… if you prefer being fully in control, you can, but it comes with technical complexities,” Collins said.
“If you wish to trust a third party like conventional banking, there will be numerous options, such as custodial versus non-custodial services. Those services will become more robust, offering more choices in the future. Yes, risks in technology will persist,” he concluded.
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