Billionaire investor Stanley Druckenmiller says stablecoins could underpin global payment systems in the next year or two, while reaffirming his long-standing skepticism about the broader cryptocurrency market.
“I think our entire payment system will be stablecoins in 10 or 15 years,” he said in an interview published by Morgan Stanley on Thursday. He said fiat-pegged tokens are “efficient, faster and cheaper” than traditional payment infrastructure. “The use of blockchain and stablecoins is very useful for improving productivity.”
Stablecoins such as Tether’s USDT and Circle Internet (CRCL) USDC are cryptocurrencies designed to maintain a fixed value, typically pegged to a fiat currency (most commonly the U.S. dollar), and are widely used for trading, payments, and transfers in digital asset markets.
Druckenmiller’s views are in line with recent statements from Australian investment bank Macquarie, which said tokens are already reshaping the payments and banking industries. It noted that they are evolving from a niche cryptocurrency trading tool to a potential layer of global financial infrastructure.
As for other cryptocurrencies, however, the veteran investor repeated criticisms he has made of the broader cryptocurrency space over the years.
“I said it a long time ago and I’ll say it again: It’s about finding solutions to problems.”
Bitcoin’s staying power
While Druckenmiller is skeptical of much of the cryptocurrency ecosystem, he has previously acknowledged that Bitcoin has become a store of value.
“I’m actually disappointed that it ended up being a store of value because it wasn’t needed in the first place,” Druckenmiller said in an interview with Morgan Stanley. “But it has become a brand and people like it. So it could become a store of value.”
Druckenmiller questions how long the dollar can maintain its status as the world’s reserve currency. This is not a new position. In 2021, he said the U.S. dollar was losing its reputation globally and suggested at the time that cryptocurrencies might replace it.
“We’re doing everything we can to destroy it. But I’m 72 and it’s probably going to outlive me.”
“I suspect it will be a reserve currency in 50 years, but I don’t know what it will be. Maybe a cryptocurrency, which I hate.”