Do Kwon Was Right About the Future of Stablecoins

In 2022, Do Kwon joined Azeem Azhar on the Exponential View podcast. In that episode, he shared his thoughts about the future of stablecoins. What he said back then is now becoming reality.

What Do Kwon Said About Stablecoins

DO KWON: ” When I first started looking into crypto in late 2016, early 2017 timeline, one of the most fascinating things to me is that for an industry that brands itself the cryptocurrency industry, there were very few people that was actually working on the problem of making better currency. Most entrepreneurs were focused on either building better apps or creating better blockchains.
I think, though, that if we are to fulfill sort of the holy grail mission of Bitcoin, which is to become peer-to-peer electronic cash, and then to realize a lot of the innovation that we created in 2020, 2021 of DeFi, it’s really important to have a decentralized dollar. And what that means is a cryptocurrency that retains all the price stability profile of Fiat currencies, like the dollar, the Korean won, the Japanese yen, while at the same time, it also maintains a lot of the programmable and censorship-resistant properties of Ethereum and Bitcoin.
So that’s essentially why I think a stablecoin is the most interesting project. And the numbers back this up. So stablecoins make up about 80% of all spot volume across all crypto trading. It makes up the greatest amount of volume in both TVL and quote currency volumes across DeFi and on-chain metrics. So I would say that both from sort of a future-proof perspective and how the numbers speak today, the stablecoin is far the most important product in crypto. “

Do Kwon explained that when he first entered the crypto world in 2016 and 2017, most people were not focused on improving money itself. Many were building new apps and blockchains, but very few were trying to make better digital money.

He said that if cryptocurrency wants to achieve Bitcoin’s original goal of being used as real electronic cash, it must have a stable and decentralized currency.

He described the ideal stablecoin as a digital version of the dollar or other fiat currencies that keeps its price stable but also has the benefits of crypto, such as transparency, freedom, and decentralization.

He also mentioned that stablecoins already made up most of the crypto trading volume and were the most used product in decentralized finance. For him, that was proof that stablecoins were the most important part of the crypto economy.

What the Statement Means in Context

Do Kwon was making one clear point. Crypto was meant to create a new kind of money, but most of the industry was not focused on that. Stablecoins became the first real answer to that goal.

Stablecoins connect two things:

• The price stability of regular currencies like the dollar
• The openness and freedom of blockchain technology

He believed that if cryptocurrency is ever going to be used for daily payments and not just for trading, stablecoins are the key.

The Global Trend Today

Now, a few years later, his prediction is coming true.

The Growth of Stablecoins

Stablecoins are now used more than Bitcoin or Ethereum for daily transactions. They are the main tools for:

• Trading
• Payments
• DeFi projects
• Sending money across borders

They have become the digital version of the dollar inside the blockchain world.

Governments Are Creating Their Own Versions

Many countries have noticed this and are now building their own digital currencies, often called Central Bank Digital Currencies or CBDCs. These projects aim to make payments faster, reduce cash use, and keep control of money in a digital world.

The United States has also started to create friendlier crypto policies, showing that governments are beginning to accept digital currencies as part of the global financial system.

The Connection to Terra Classic (LUNC)

Do Kwon’s idea about stable, programmable digital money matches what is happening now. The Terra Classic blockchain already has a big advantage because it supports more than 20 different stablecoins.

This means the Luna Classic community is already moving in the right direction. To truly bring LUNC back to life, focusing on rebuilding and repegging its own stablecoin like USTC is one of the best steps forward.

Conclusion

Do Kwon’s prediction from 2022 is becoming true. Stablecoins are no longer just an experiment. They are now at the center of the crypto world. And Terra Classic, with its experience in stablecoins, is in a strong position to grow again as the world moves toward digital money.