Stablecoins Could Power Global Payments: Druckenmiller

Billionaire investor Stanley Druckenmiller said blockchain and stablecoins may only be a decade away from powering the global payments system — though he isn’t sold on the idea of crypto functioning as a store of value.

In an interview with Morgan Stanley recorded on Jan. 30 and released on Friday, the former hedge fund manager said blockchain-based tokens — particularly stablecoins — boost productivity in the payments space:

“Blockchain and the use of stablecoins, if you want to throw crypto into that, tokens, incredibly useful in terms of productivity,” Druckenmiller said.

“I assume our whole payment systems will be stablecoins in 10 or 15 years,” he said, adding that stablecoins are more efficient, faster and cheaper than existing solutions.

Druckenmiller founded Duquesne Capital Management in 1981 and closed the fund in late 2010. During that time, he achieved an average annual return of 30% and never experienced a down year.

Druckenmiller said back in May 2021 that a blockchain-based system could replace the payment rails that power the US dollar due to a lack of trust in the traditional banking system.

“Well, the problem has been clearly identified. It’s Jerome Powell and the rest of the world, central bankers. There’s a lack of trust,” he told CNBC’s Squawk Box at the time.

Several traditional payments firms, such as Western Union, MoneyGram and Zelle, announced plans to launch stablecoin settlement systems last year following the passage of the stablecoin-focused GENIUS Act in July, which provided a clear regulatory framework for payment firms to offer digital asset services.

Drunkenmiller not sold on crypto as a store of value

Despite Druckenmiller’s conviction on blockchain and stablecoins, he isn’t convinced that cryptocurrencies like Bitcoin (BTC) can function as a store of value.

“It’s a solution looking for a problem. I’m very sad that it ever happened,” Druckenmiller told Morgan Stanley. 

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“It wasn’t needed,” but crypto has become a brand that some people love, so it will function as a store of value to them, he said.

Back in October 2023, Druckenmiller said he compared Bitcoin to gold, stating that he prefers the latter because it is a “5,000-year-old brand.”

Druckenmiller went on to say that he doesn’t own any Bitcoin, but that he should.

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