tl;dr
Tether co-founder Reeve Collins predicts every currency will transition to stablecoins by 2030, driven by blockchain technology, regulatory shifts, and tokenization, reshaping global finance.
**Reeve Collins Predicts All Currencies Will Be Stablecoins by 2030, Foreseeing a Blockchain-Driven Financial Future**
In a forward-looking interview during Token2049 in Singapore, Reeve Collins, co-founder of Tether, outlined a vision for the future of global finance, predicting that *all currency* will transition to stablecoins by 2030. Collins, a key figure in the cryptocurrency space, argued that traditional fiat currencies like the U.S. dollar, euro, and yen will eventually operate on blockchain networks, redefining how money is transferred and managed.
**The Rise of Stablecoins as the New Financial Backbone**
Collins asserted that stablecoins—cryptocurrencies pegged to traditional assets—will become the dominant medium for financial transactions. “All currency will be a stablecoin,” he said. “Even fiat currency will be a stablecoin. It’ll just be called dollars, euros, or yen.” He emphasized that stablecoins offer a seamless blend of stability and efficiency, enabling instant, borderless transactions while maintaining the value of traditional money.
The co-founder highlighted that the shift is already underway, driven by the growing utility of tokenized assets. “The benefits of tokenized assets have become too compelling for traditional finance to ignore,” he noted. Within the next five years, Collins anticipates that stablecoins will dominate money transfers, even as legacy systems like the U.S. dollar remain in use.
**A Regulatory Shift Opens Doors for Crypto**
Collins credited the U.S. government’s recent “shift in stance” toward cryptocurrency as a pivotal moment for the industry. He argued that this regulatory clarity has alleviated fears among traditional financial institutions, which had previously hesitated to enter the space due to uncertainty. “The best thing to ever happen to the crypto market was this positive shift,” he said.
This newfound openness, Collins claimed, has “opened the floodgates” for banks and institutions to adopt blockchain technology. He pointed to the surge in interest in blockchain-based stablecoins, which are seen as a lucrative and efficient way to transact. “Every large institution, every bank, everyone wants to create their own stablecoin,” he said, predicting a future where centralized finance (CeFi) and decentralized finance (DeFi) will merge into a unified ecosystem.
**The Tokenization Revolution**
Collins emphasized the transformative potential of tokenized assets, which he described as “far more transparent and efficient” than their non-tokenized counterparts. By leveraging blockchain, assets can be transferred globally without intermediaries, unlocking new avenues for liquidity and investment.
“This is why the tokenization narrative is so big,” he explained. “Even the same assets, once tokenized, gain utility, which translates to higher returns.” This shift, he believes, will redefine how value is stored and exchanged, making tokenized assets a cornerstone of the financial system.
**Challenges and Risks of a Fully Onchain Future**
Despite the optimism, Collins acknowledged the risks inherent in a fully blockchain-based financial system. Security concerns, including vulnerabilities in blockchain bridges, smart contracts, and crypto wallets, remain critical challenges. He also highlighted the threat of crypto hacks and social engineering, though he noted that security measures are improving.
“There’s always a trade-off,” Collins said. “If you want full control, it’s technically complex. If you trust a third party, like a bank, custodial services will become more robust.” He concluded that while risks persist, the industry’s evolution will provide users with more options, balancing innovation with security.
**A Blended Future of Finance**
Looking ahead, Collins envisions a world where the lines between CeFi and DeFi blur. Applications will handle everything from loans to investments, combining traditional financial models with decentralized protocols. “There’ll be a mix of old-style investments and DeFi types of investments,” he said, underscoring a future where blockchain enhances, rather than replaces, existing systems.
As the financial landscape accelerates toward onchain adoption, Collins’ vision paints a picture of a more efficient, transparent, and inclusive global economy—one where stablecoins underpin every transaction, and the boundaries of finance are redefined by technology.