Christopher Perkins, president of crypto investment firm CoinFund, says that there is a multi-trillion dollar opportunity in one area of the digital assets sector.
In a new Real Vision interview, Perkins, who oversees a $1.3 billion investment fund, says that fiat-pegged digital assets known as stablecoins hold a lot of promise for real-world use cases.
Perkins says stablecoins pegged to the US dollar could preserve the US dollar as a reserve currency and improve access to it in third-world countries.
“I think if you want to perpetuate the US dollar as a reserve currency, stablecoins are the way to go. If you’re sitting in a developing world, in Africa, Venezuela, what assets do you really want to hold on to? Probably dollars.”
He also says that stablecoins could lower the risk of trading settlements across the FX markets, which see about $7.2 trillion worth of trades daily.
“You want to make sure the assets that you hold [that] there is utility and you deliver utility. Crypto is oftentimes criticized for its failure to deliver utility. Well, stablecoins are staring you in the face as one of the most useful applications of cryptocurrency technology out there.
FX markets trade $7.2 trillion per day. It takes forever sometimes it feels when you’re taking risks for them to settle, like you’re trying to settle with Yen. For me to be able to settle currencies instantly with anyone in the world – it eliminates risk. It eliminates Herstatt risk.
Look, stablecoins bring incredible utility, they’re an incredible opportunity, great business opportunity, also great instrument of national security – I believe – and I really hope we get it right.”
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The post $7,200,000,000,000 Opportunity Exists in This Crypto Sector, Says Strategist at $1,300,000,000 Investment Fund appeared first on The Daily Hodl.
