Reeve Collins, co-founder of Tether, believes that the future will see all forms of currency, including traditional ones like dollars and euros, represented on blockchain as stablecoins by 2030.

“All currency will be a stablecoin. So even fiat currency will be a stablecoin. It’ll just be called dollars, euros, or yen,” Collins mentioned during his interview at Token2049 in Singapore.
“A stablecoin simply is a dollar, euro, yen, or, you know, a traditional currency running on a blockchain rail by 2030.”

Collins elaborated that stablecoins are likely to become the predominant method for money transfers within the next five years due to their compelling advantages over traditional finance.

Positive Shift in US Crypto Regulation

Collins highlighted the favorable change in the US government’s stance towards the crypto market as a significant development this year. He pointed out that many major traditional finance institutions were hesitant to venture into the crypto space due to fears of regulatory scrutiny. However, now there’s a noticeable shift encouraging these firms to explore crypto, particularly in stablecoins, recognized for their practical applications.

“Every large institution, every bank, everyone wants to create their own stablecoin, because it’s lucrative and it’s just a better way to transact.”

With blockchain technology making transactions more efficient, Collins predicts a blending of traditional and decentralized finance practices, eliminating the rigid lines that once separated them.

Risks Associated with Onchain Transactions

Nevertheless, Collins acknowledged risks associated with blockchain, such as the security of blockchain bridges and smart contracts. He stated that while security is gradually improving, challenges persist, particularly with crypto hacks and social engineering threats. Collins explained:

“The old trade-off is still going to remain there… which is if you want to be fully in control… you can do that, but it’s technically complex.”

In summary, while the potential for stablecoins and onchain finance appears vast, Collins advocates for caution and thorough understanding of the technology involved.