According to Reeve Collins, co-founder of Tether, the global financial system will undergo a major transformation within the next five years. All currencies – from the US dollar to the euro and yen – will move onto the Blockchain and become stablecoins, a type of cryptocurrency pegged to stable assets.

Speaking at the Token2049 conference in Singapore, Collins predicted that by 2030, stablecoins will represent the primary way people and businesses transfer money worldwide. “All currencies will be stablecoins. Even fiat currencies will be stablecoins – they’ll just keep being called dollars, euros, or yen,” he said in an interview.

Collins explained that a stablecoin is essentially a traditional currency “running on Blockchain rails.” The advantages of tokenized assets – such as transparency, transaction speed, and the removal of intermediaries – are, in his view, too compelling for traditional finance to ignore.

Stablecoins as the main payment channel within five years

Collins expects stablecoins to become the dominant tool for money transfers within five years. “Probably even sooner, because you’ll still be using dollars. It depends on what you consider a stablecoin. If the definition is money moving on the Blockchain, then the transition has already started,” he said.

He pointed to this year’s shift in the US government’s stance on cryptocurrencies as a turning point. This move, he argued, “opened the floodgates” for traditional financial institutions to enter the sector, especially in the area of Blockchain-based stablecoins. “Every major institution, every bank wants to create its own stablecoin, because it’s lucrative and a better way to process transactions,” Collins added.

Tokenization: faster transfers, higher efficiency

Tokenization is currently one of the biggest trends in the crypto world. Real-world assets – such as stocks, bonds, or currencies – are given a digital version on the Blockchain, becoming so-called tokenized assets.

The key benefits? Transparency and efficiency. With the Blockchain, these assets can be transferred globally in seconds without banks or clearing houses. This saves time, money, and administrative costs. “The difference in utility value is massive: two identical assets can yield different returns just because one runs on the Blockchain,” Collins emphasized. In his view, digitized financial products are more efficient and can even generate higher profits.

Onchain world and its risks

The shift of finance to the Blockchain is not without risks. Weak points include blockchain bridges, bugs in smart contracts, or poorly secured crypto wallets. Hackers and scammers also remain a threat, often targeting human negligence rather than the technology itself.

Collins, however, stressed that security is improving rapidly. In the future, people will have more options: either manage their digital finances themselves or rely on trusted third parties, much like today’s banks. “Yes, there will always be technological risks,” Collins concluded. “But services will grow increasingly robust, and people will have more ways to protect their money.”

Sources:

https://cointelegraph.com/news/all-currency-will-be-stablecoin-before-2030-reeve-collins

https://cointelegraph.com/news/report-banks-aren-t-flirting-with-web3-anymore-they-re-building-on-it