Blockchain rails may transform global finance within five years
The co-founder of Tether, Reeve Collins, believes that all forms of money, including dollars, euros, and yen, will exist as stablecoins by 2030, marking a complete shift toward blockchain-based finance. Speaking during Token2049 in Singapore, Collins argued that the evolution of stablecoins has made their integration into traditional systems inevitable.
Stablecoins as the future of money
Collins explained that a stablecoin is essentially a fiat currency issued on blockchain rails, providing faster and more efficient transfers.
“All currency will be a stablecoin. It’ll just be called dollars, euros, or yen, but running on a blockchain,” he said.
He added that stablecoins will likely become the primary method of money transfer within the next five years, as traditional finance cannot ignore the utility of tokenized assets.
U.S. stance opened the floodgates
Collins credited the recent positive shift in U.S. regulatory stance toward crypto as a turning point. He noted that large financial firms had previously avoided blockchain integration due to regulatory uncertainty, but the landscape has changed.
“Every large institution, every bank, everyone wants to create their own stablecoin, because it’s lucrative and just a better way to transact,” Collins stated.
This regulatory clarity has opened the door for widespread institutional participation, with stablecoins at the center of adoption.
Tokenization driving adoption
The push toward tokenized assets is another driver. Tokenization enhances transparency, efficiency, and speed in global finance.
“The increase in the utility you get from a tokenized asset versus a non-tokenized asset is so significant that even the same two assets, once moved onchain, generate greater returns,” Collins emphasized.
Collins acknowledged risks remain, including blockchain bridge vulnerabilities, smart contract security, and wallet management. While security is improving, he stressed that individuals will still face the trade-off between self-custody and reliance on third-party custodians.
Ultimately, he concluded that the coming years will bring a fusion of traditional and decentralized finance, where lending, investing, and payments happen seamlessly across blockchain rails.
Disclaimer
This content is for informational purposes only and does not constitute financial, investment, or legal advice. Cryptocurrency trading involves risk and may result in financial loss.