Galaxy Digital CEO "Stablecoins, Possibility to Replace Foreign Exchange Market Within 5 Years"

Mike Novogratz Galaxy Digital CEO (Source: CNBC)

Mike Novogratz, CEO of Galaxy Digital, projected that stablecoins could replace the traditional foreign exchange market within the next 5 years.

According to U.Today on the 27th, Novogratz pointed out that the traditional foreign exchange market faces structural limitations such as slow transaction speed and high fees. He emphasized that stablecoins could provide a solution to these problems and could be a "game changer."

Novogratz also noted that the global financial system is rapidly transitioning to digital currency. He warned via social media X, "If you want to participate in the world's flow, you will fall behind if you don't join quickly." He made it clear that countries not adopting stablecoins could fall behind in competition.

The stablecoin market has noticeably grown in recent years. The market size, which was about $10 billion in 2020, has exceeded $230 billion as of 2023. Meanwhile, new competitors continue to emerge. Last month, Reuters reported that Fidelity is considering launching a dollar-based stablecoin, and Ripple introduced RLUSD in December last year.

In the U.S. Congress, discussions are underway with the goal of passing the STABLE Act and the GENIUS Act for stablecoin regulation, but distrust still remains in the market. Especially after the collapse of the Terra and Luna projects in 2022, there is still a task to restore investor confidence. Novogratz also admitted responsibility for promoting Terra and Luna in the past and paid a $200 million fine to the New York regulatory authorities.

It remains to be seen whether stablecoins can change the foreign exchange market paradigm and how countries will respond to the digital transition trend.