- Eric Golden expects Stablecoins to be the most important topic in the next 12 months.
- Stablecoins are helping people in developing nations protect their wealth from high inflation.
- Golden highlighted how Bitcoin surged due to ETF activity but sees stablecoins as game-changers.
- Stablecoins provide unbanked populations with easy access to safe assets using just a phone.
Eric Golden, from Canopy Capital, highlighted the growing importance of stablecoins. In the next year, he expects stablecoins to be an important topic in crypto.
During an interview, Golden discussed how Bitcoin surged from $16,000 to $67,000, driven largely by recent ETF (Exchange-Traded Fund) activity. “The ETF has raised $20 billion in 12 months,” said Golden. But the surge isn’t just about Bitcoin or ETFs. Golden believes that the real game-changer will be stablecoins in the coming months.
The Power of Stablecoins in Developing Nations
Golden also explained that in developing nations, stablecoins are already playing a huge role. However, he claims that stablecoins are becoming the preferred safe asset in countries with runaway inflation. Golden acknowledged that in these regions, stablecoins provide a way for people to protect their wealth in economies where inflation can be 20% or higher.
Golden stressed that all one needs is a phone to access and use these digital assets. So, this feature gives stablecoins unique utility in nations where the unbanked population is high, and inflation is skyrocketing. He noted that this makes them a natural fit for unbanked people, saying, “If you have runaway inflation, it could be a safe asset.”
ETF Growth and Bitcoin’s Future
Although stablecoins are projected for greatness, Golden didn’t discount the importance of Bitcoin. So, he pointed out that the recent jump in Bitcoin’s price was due to the rise of ETFs. These ETFs have brought more institutional attention to Bitcoin, making asset managers rethink their stance on the cryptocurrency. “Every asset management firm has to decide what’s our position on Bitcoin,” Golden noted. He also discussed how Bitcoin, for a while, acted more like a risk-on asset, showing volatility as markets expected the Federal Reserve to continue cutting interest rates.
Golden remarked that the surge in Bitcoin’s value wasn’t isolated but tied to a broader set of global financial events. “In September, we saw central banks around the world cut rates,” he said, noting that 21 banks made these cuts in a coordinated way not seen since COVID or the Great Financial Crisis. So, this, along with election news, is driving investor sentiment.
Conclusion: The Future of Stablecoins
Eric Golden predicts that stablecoins will become very vital over the next 12 months, they will be the main focus, especially in developing economies struggling with inflation. Golden views stablecoins as an essential tool for the unbanked and those dealing with extreme inflation.
Also, Golden believes stablecoins will soon take center stage. They are not only a safe asset but also a critical financial tool in unstable economies. As he put it, “Stablecoins will be the most important topic in my opinion over the next 12 months.”
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