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Decentralised stablecoins might rule the cryptocurrency market: MakerDAO’s creator
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Decentralised stablecoins might rule the cryptocurrency market: MakerDAO’s creator

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Rune Christensen, co-founder of the DeFi pioneer MakerDAO, envisions a promising future for stablecoins, especially decentralized variants. He believes that with appropriate regulation, stablecoins will surge into the mainstream, but the true potential lies within decentralized stablecoins.

In a conversation with Andrew Fenton of Cointelegraph at Token 2049 in Singapore, Christensen shared his insights regarding the trajectory of decentralized stablecoins like Dai and their pivotal role in the broader cryptocurrency landscape.

During the discussion, the duo delved into a presentation delivered by Nic Carter, a partner at Castle Island Ventures, in which Carter speculated that interest-bearing stablecoins could command a significant 30% market share within the next two years.

Christensen concurred with this notion but emphasized its dependency on the macroeconomic environment, remarking, “If persistently high inflation and interest rates persist, then the dominance of stablecoins is likely to expand.”

When questioned about the potential competition between decentralized stablecoins and their centralized counterparts, Christensen responded confidently, saying, “Without a doubt. I believe that if the cryptocurrency space realizes its full potential, decentralized stablecoins will come to dominate the entire market, relegating centralized stablecoins to the periphery, connecting us to the legacy financial system.”

He further noted that if the cryptocurrency space matures and becomes subject to regulation, centralized stablecoins may gain more widespread acceptance. Nevertheless, Christensen emphasized that the genuine opportunity lies within decentralized stablecoins, stating, “I see the true competitive edge of decentralized stablecoins, fueled by real-time data like Maker, as the ability to transform savings into a gamified experience.”

In mid-2022, Christensen introduced MakerDAO’s “Endgame Plan,” proposing a transition for DAI into a freely floating asset initially collateralized by real-world assets (RWAs). The plan outlines a three-year phase during which DAI will maintain its peg to the dollar. Throughout this period, the protocol will intensify its focus on RWAs, aiming to amass a substantial amount of Ether (ETH) to bolster the ratio of decentralized collateral.

Christensen holds the view that Maker has established a robust and secure foundation but has been overshadowed by dubious and illicit projects. He aspires to infuse gamification into the protocol, making it engaging and appealing, particularly to younger users. “It’s what the people desire,” he asserted, adding, “Designing interfaces akin to games aligns with the preferences of our users.”

Crypto products and NFTs are unregulated and can be highly risky. There may be no regulatory recourse for any loss from such transactions. Crypto is not a legal tender and is subject to market risks. Readers are advised to seek expert advice and read offer document(s) along with related important literature on the subject carefully before making any kind of investment whatsoever. Crypto market predictions are speculative and any investment made shall be at the sole cost and risk of the readers.