Stablecoins could power global payments: Druckenmiller

Billionaire investor Stanley Druckenmiller says it may only be 10 years before blockchain and stablecoins power the world’s payment systems, but he is not sold on the idea that cryptocurrencies can act as stores of value.

In an interview with Morgan Stanley recorded on January 30 and published on Friday, the former hedge fund manager said that blockchain-based tokens, particularly stablecoins, will increase productivity in the payments space.

“Using blockchain and stablecoins, and tokens if you want to put some cryptocurrencies into it, is very useful in terms of productivity,” Druckenmiller said.

“In 10 or 15 years, our entire payment system will be stablecoins,” he said, adding that stablecoins are more efficient, faster and cheaper than existing solutions.

Mr. Druckenmiller founded Duquesne Capital Management in 1981 and closed the fund at the end of 2010. During that time, we achieved an average annual return of 30% and never had a down year.

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

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

Several traditional payment companies, including Western Union, MoneyGram, and Zelle, announced plans to launch stablecoin payment systems last year following the passage of the stablecoin-focused GENIUS Act in July. The GENIUS Act provided a clear regulatory framework for payment companies to provide digital asset services.

Drunk Miller does not sell cryptocurrencies as a store of value

While Druckenmiller believes in blockchain and stablecoins, he is not convinced that cryptocurrencies like Bitcoin (BTC) can function as a store of value.