Tether co-founder Reeve Collins predicts that by 2030, “all currency” will transition to stablecoins, marking a significant shift towards on-chain finance.
“All currency will be a stablecoin. Even fiat currencies will be stablecoins, referred to simply as dollars, euros, or yen,” Collins stated during an extensive interview at Token2049 in Singapore.
He further explained, “A stablecoin is basically a dollar, euro, yen, or any traditional currency operating on a blockchain by 2030.”
Collins believes that stablecoins will soon become the predominant method of money transfer, as the advantages of tokenized assets grow increasingly attractive to traditional financial institutions.
“Probably even before that, since dollars will still be in use. But it hinges on how you define stablecoin. Essentially, a stablecoin means you are transferring money on a blockchain,” he clarified.
US Crypto Shift: A Boon for the Market
Collins argued that the most beneficial event for the crypto market this year was the US government’s favorable “shift in stance” towards the sector.
He noted that many large traditional finance firms were hesitant to enter the industry due to fears of government scrutiny; however, the landscape has dramatically changed, even though some uncertainty remains.
Collins mentioned that this shift has opened the “floodgates,” prompting traditional financial institutions to rush into the crypto sector, with blockchain-based stablecoins becoming a primary focus due to their inherent utility.
“Every major institution and bank aims to develop their own stablecoin because it’s profitable and a superior way to transact. These floodgates are open, leading to a future without distinctions between CeFi and DeFi,” he remarked.
“We’ll see applications that facilitate transactions, loans, and investments, combining the traditional investment approach with DeFi methods.”
Strong Tokenization Narrative
Collins emphasized that tokenized assets provide significantly greater transparency and efficiency compared to non-tokenized assets, enabling rapid global transfers without intermediaries, which presents a greater potential upside.
“That’s why the tokenization narrative is powerful; the utility gained from a tokenized asset is so profound that even identical assets, once moved on-chain, present increased returns due to enhanced utility,” he stated.
Related: ‘Horse has left the barn:’ ETHZilla bets big on Ethereum’s stablecoin play
Challenges of a Fully On-Chain Transition
Despite the optimism, Collins acknowledged the potential risks of such a significant transition in global finance, particularly concerning the security of blockchain bridges, smart contracts, and crypto wallets.
He identified crypto hacks and social engineering as critical issues needing attention, although he noted that overall security levels are “improving.”
“The old trade-off remains… if you wish to have full control, that’s possible, but it’s technically complex,” Collins explained.
“Those who prefer to rely on a third party, as is traditional with banks, will find more robust custodial and non-custodial options as the market evolves. Yes, technology will always come with its risks,” he concluded.
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