Christensen claims decentralized stablecoins will surpass centralized stablecoins "if high inflation rates continue."
Rune Christensen, one of the founders of decentralized finance (DeFi) giant MakerDAO, has made a bold prediction: decentralized stablecoins like Dai (DAI) might soon overshadow their centralized counterparts.
During an interview at the Token 2049 conference in Singapore, Christensen discussed the future landscape of stablecoins.
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The conversation was sparked by a presentation from Castle Island Ventures partner Nic Carter, who forecasted that interest-bearing stablecoins could make up 30% of the market in two years.
MakerDAO co-founder agreed with such a view but was cautious, claiming that it would only happen "if high inflation rates continue."
Christensen further elaborated on how decentralized stablecoins could outperform their centralized rivals:
I think if the space ends up living up to its potential, then decentralized stablecoins will be the entire market like centralized stablecoins would be the edges that connect us to like the legacy system.
Christensen also touched upon the unique benefits of decentralized stablecoins. According to him, one of their main advantages is the "ability to gamify your savings." He argued that this feature would be particularly attractive to a younger audience, already leaning toward game-like interfaces.
In terms of plans for MakerDAO, Christensen revealed the company’s "Endgame Plan," proposed in mid-2022. The strategy aims to transition DAI into a free-floating asset, initially backed by real-world assets (RWAs).
The plan envisions a three-year period where DAI continues to be pegged to the US dollar. During this phase, the protocol will attempt to maximize Ether (ETH) holdings, thereby increasing the proportion of decentralized backing.
Despite Maker's strong and stable foundation, Christensen admitted that the platform has lost ground to less reputable projects. He expressed a desire to make the protocol more gamified.
It is worth noting that at the end of July, MakerDAO received a green light from its community to provisionally enhance the interest rates for tokenholders.
Christensen's views underscore a growing belief that decentralized stablecoins may become the cornerstone of the stablecoin market, contingent on the broader crypto industry meeting its ambitions.
