Why the Dollar's Stablecoin Update is Inevitable | Jeremy Allaire, Circle
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Wow. What happens if money velocity means that the amount of transactions that could happen in the world go up a 1000 x from where they are today? By the end of 2025, stablecoins like USDC will be legal electronic money supervised by the central banks in the major financial market centers, and it will be something that TradFi, right, traditional markets will actually be able to utilize.
Can't remember last time I funded a deal, with a wire transfer. In many ways, it's a yellow flag or red flag at this point.
As a founder in crypto, I think there's a lot of folks who, I mean, are basically waiting for the IPO markets to open up. And I'm I'm sure you can't share too much, but I will say it's, like, it's all eyes right now on Circle and Kraken. This episode is brought to you by Anoma, the universal intent machine introducing a new era of applications where you define the outcomes you want. To stay up to date with Anoma, you can follow them at x.com/anoma or sign up for the newsletter at anoma.net. Special thanks to Anoma for sponsoring today's episode. Real is a permissionless l two designed for toke
Thank you. Really, really happy to be here. Yeah.
So okay. So I think people have probably heard the Jeremy story a lot and the Circle story, and they've heard, Jeremy answer questions like, how do you compete with Tether, and how does Circle make money, and who's using, these stable coins? That is not what I want to, make this episode. I think that Jeremy, for people who know his background, has a really interesting story precrypto, building companies in the Internet world, and then getting into crypto. So, Jeremy, what I wanna do with this episode is talk about, how changing the velocity of money by through stablecoins will actually change
Yeah. I mean, like, so the the the the bigger theme, there's lots of, ways, of talking about that. You know, the the you know, when people have, like, a USD balance somewhere that might have different meaning to them in terms of what that is, but every one of those balances, implies, a lot of different kinds of risk, a lot of embedded, credit risk, market risk, liquidity risk, all kinds of stuff. But at the end of the day and, actually, I asked this question, this exact same question to a number of years ago to the chief information officer of of the of the New York Fed or of the Fed. And and
would love to, I would have loved to see your your, pitch deck when you guys were raising. It's like, what's the, you know, the the classic TAM deck? TAM stuff. I I say it's
a $100,000,000,000,000. No. I I well, so check this out. Right? The TAM of legal electronic money is a $100,000,000,000,000. Yeah. And this is actually a good segue back to your original question. So the TAM of legal electronic money is a $100,000,000,000,000, and that is kind of money that exists that's in motion and is being utilized in the economy, and that's a that's an extraordinary amount. And that's in many currencies, that's not just US dollar, but that's the dollar denominated value of it. And then there's another set of TAMs, which are, you know, the the actual use of that legal elec
It's like Internet pre 2002 broadband. It's
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