Billionaire investor Stanley Druckenmiller said that blockchain and stablecoins could emerge within just a decade of powering the global payments system – although he is unconvinced by the idea of cryptocurrencies functioning as a store 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 – enhance productivity in the payments space:
“Blockchain and the use of stablecoins, if you want to throw cryptocurrencies into the mix, tokens, extremely useful in terms of productivity,” Druckenmiller said.
“I assume that in 10 or 15 years our entire payment systems will be based on stablecoins,” he said, adding that stablecoins are more proficient, faster and cheaper than existing solutions.
Druckenmiller founded Duquesne Capital Management in 1981 and closed the fund in overdue 2010. During that time, it achieved an average annual return of 30% and never experienced a down year.
Druckenmiller said 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 time-honored banking system.
“Well, the problem has been clearly identified. It’s about Jerome Powell and the rest of the world, the central bankers. There’s a lack of trust,” Squawk Box told CNBC at the time.
Several time-honored payments companies 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 payment companies with a clear regulatory framework for offering digital asset services.
Drunkenmiller is not traded on cryptocurrencies as a store of value
Despite Druckenmiller’s belief in blockchain and stablecoins, he is not convinced that cryptocurrencies such as Bitcoin (BTC) can function as a store of value.
“This is a solution to the problem. I’m very sorry that this even happened,” Druckenmiller told Morgan Stanley.
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“It wasn’t necessary,” but cryptocurrencies have become a brand that some people love, so it will provide a store of value for them, he said.
In October 2023, Druckenmiller said he compared Bitcoin to gold, stating he preferred the latter because it is a “5,000-year-old brand”.
Druckenmiller went on to say that he doesn’t own any Bitcoin, but he should.
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