Billionaire investor Druckenmiller: “Stablecoins will dominate global payments within 10 years”

Legendary Wall Street investor Stanley Druckenmiller forecast that blockchain and stablecoins will lead the global payments system within the next decade. He was, however, skeptical about cryptocurrencies such as Bitcoin (BTC) functioning as stores of value.

On the 13th (local time), Druckenmiller said in an interview with Morgan Stanley that “blockchain-based tokens, especially stablecoins, are enormously useful in maximizing productivity in payments.”

He added, “In 10 to 15 years, I expect all of our payment systems to be replaced by stablecoins,” saying, “Stablecoins are far more efficient, faster and cheaper than existing payment networks.”

Behind the forecast is distrust in the traditional financial system. In May 2021, appearing on CNBC, Druckenmiller said, “A lack of trust in central banks around the world, including Federal Reserve Chair Jerome Powell, is the fundamental problem,” adding that “a blockchain-based system could replace the U.S. dollar payments network.”

In fact, major traditional payment companies such as Western Union, MoneyGram and Zelle have lent momentum to the shift, rushing to announce plans to adopt stablecoin payment systems after passage of the so-called GENIUS Act, which clarified the stablecoin regulatory framework, in July last year.

Druckenmiller, however, voiced a negative view of cryptocurrencies such as Bitcoin.

He criticized Bitcoin as “a solution created in search of a problem,” calling it “an invention that was never needed in the first place,” and said it was “deeply regrettable” that cryptocurrencies emerged. Still, he added that “crypto has already become a brand many people love,” and that “for some, it will function as a store of value.”