Galaxy Digital CEO Michael Novogratz opines that stablecoins will be used most by artificial intelligence agents, as AI and crypto become much more intertwined over time.
During a recent interview with Bloomberg TV, a forecast regarding the imminent future of the stablecoin market was offered by Michael Novogratz. The founder and CEO of Galaxy Digital asserts that the adoption of stablecoins is only in its infancy, and the crypto market will soon experience a major acceleration in the sector.
At the Goldman Sachs Asia Leaders Conference in Hong Kong on September 3, Michael Novogratz forecasted that a dramatic increase in stablecoin transactions will be witnessed sometime in the distant future, potentially within one to five years.
According to forecasts from firms like McKinsey and Standard Chartered, the stablecoin market will be propelled from its current $280 billion to $2 trillion, a surge that will be driven by AI agents conducting routine transactions enabled by stablecoins.
According to Michael Novogratz, AI is positioned to become the largest user of stablecoins in the not-so-distant future. He elaborated that a user will simply issue a voice command to their device to “buy my groceries,” and their automated agent, aware of their preferences and diet, will know exactly which items to acquire and from where.
He also noted that traditional wire transfers or Venmo payments will not be utilized by them; instead, a digital currency will be transmitted via a crypto rail.
A significant surge in the global acceptance of stablecoins has been observed, following the enactment of the GENIUS Act in the United States and the Stablecoin Ordinance in Hong Kong. The stablecoin market’s total value has climbed to as high as $287 billion, nearing the $300 billion mark. Leading consultancy groups have projected that this figure will soar dramatically in the next three years, reaching a valuation in the trillions.
AI (Artificial Intelligence) Agent Platforms Forge Strategic Blockchain Collaborations
Meanwhile, the AI agents segment has also seen significant developments, with more joint ventures being formed between AI agent platforms and blockchain enterprises. Earlier this year, two AI agent projects, Flagship and Virtuals, collaborated to introduce the FYI token.
Currently, the AI Agents sector has continued to hold sway over AI and crypto, with more than 46% of the total market capitalization being attributed to it. According to data from CoinGecko, the AI Agents sector has noted a 3.8% uptick in the past 24 hours, which is a welcome relief compared to the negative trajectory it experienced last month.
Novogratz’s Take on the Dollar vs. Yuan Stablecoin Rivalry
According to Michael Novogratz, the rivalry between China and the U.S. to extend their currency’s influence into the global economic landscape is transitioning into the realm of stablecoins. As today’s stablecoin market is predominantly comprised of dollar-backed stablecoins like USDT, USDC, and PYUSD, the development of a stablecoin tied to the renminbi to challenge the dollar’s supremacy is being considered by China.
According to Michael Novogratz, it is considered to be “just a matter of time” before China closes the gap and unveils its own yuan-backed stablecoin.
The U.S. has emerged as the global leader, a position that was commented on by Novogratz. He noted that because it is the world’s largest economy, most countries are now attempting to emulate its actions, a transformation that he described as having occurred at a remarkable speed.
In a recent development, the possibility of registering for a Hong Kong stablecoin license has been weighed by China’s National Petroleum Corporation in order to create a yuan-backed stablecoin, which could prove advantageous for international transactions.
Currently, a strategy to explore stablecoins as a way to combat the dollar is being intensified by China. Officials are reportedly soliciting feedback from experts on the best way to roll out stablecoins tied to the renminbi. Furthermore, Japan and South Korea have undertaken comparable initiatives to advance their own local currency-pegged stablecoins.
