Jeremy Allaire, chief executive officer of USDC issuer Circle has projected that stablecoins will constitute 10% of the global economy by 2034.

This prediction comes as stablecoins, cryptocurrencies designed to maintain a stable value, are increasingly integrated into the global financial system.

Allaire’s vision is supported by the rapid adoption of stablecoins in various financial transactions, the development of regulatory frameworks, and the growing recognition of digital assets by governments around the world.

Stablecoins play an integral role in the cryptocurrency market, with Tether’s USDT ranked as the third-largest cryptocurrency in the world with its US$112.7 billion market cap, according to CoinGecko data.

Circle’s Allaire, whose stablecoin USDC is the second-largest in the world behind Tether valued with a market cap of US$32.7 billion, envisions a future where stablecoins not only facilitate banking for those without traditional bank accounts but also reduce the costs of sending money abroad and enable seamless international trade, all through the use of public blockchain technology and smart contracts