Billionaire investor Stanley Druckenmiller said blockchain and stablecoins could be just a decade away from powering the global payments system — though he’s not sold on the idea of crypto working as a store of value.
In an interview with Morgan Stanley recorded on January 30th and published on Friday, the former hedge fund manager said that blockchain-based tokens – specifically stablecoins – will increase productivity in the payments space:
“The blockchain and the use of stablecoins, if you want to throw crypto into it, the tokens are incredibly useful in terms of productivity,” Druckenmiller said.
“I think all our payment systems will be stable in 10 or 15 years,” he said, adding that stablecoins are more efficient, faster and cheaper than existing solutions.
Druckenmiller founded Duquesne Capital Management in 1981 and closed the fund in late 2010. During this time he averaged 30% annual returns and never experienced a down year.
Druckenmiller said as early as May 2021 that a blockchain-based system could replace the payment rails, which would strengthen the US dollar due to the lack of trust in the traditional banking system.
“Well, the problem is clearly defined. It’s Jerome Powell and the rest of the world, the central bankers. There’s a lack of confidence,” he told CNBC’s Squawk Box at the time.
Several traditional payment companies, such as Western Union, MoneyGram and Zelle, announced plans to launch stablecoin settlement systems last year, following the passage of the stablecoin-focused GENIUS Act in July, which created a clear regulatory framework for payment companies to offer digital asset services.
Drunkenmiller is not sold in crypto as a store of value
Despite Druckenmiller’s belief in blockchain and stablecoins, he is not convinced that cryptocurrencies like Bitcoin (BTC) can function as a store of value.
Druckenmiller told Morgan Stanley: “It’s a solution looking for a problem. I’m very sad that this happened at all.”
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“It wasn’t necessary,” but crypto has become a brand that some people love, so it will work as a store of value for them, he said.
Back in October 2023, Druckenmiller said he compared Bitcoin to gold, stating that he preferred the latter because it was a “5,000-year-old brand.”
Druckenmiller said he didn’t own any Bitcoins, but it had to be said.
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