Tyler Winklevoss is of the opinion that stable coins will not breakthrough except if Wall Street takes part in the Decentralized Fincance (DeFi) sector
Tyler Winklevoss, who is the CEO of Gemini exchange, thinks there will be no serious emergence of stable coins until Wall Street becomes a big player in the DeFi sector. He expressed his mind recently while speaking with Camila Russo at The Defiant.
Although he is hopeful about DeFi, Tyler Winklevoss reminded his listeners that there is yet to be in existence an app that can compel people to troop en masse to the world of cryptocurrency.
No competition yet on Stablecoins
While chatting with The Defiant, the CEO of Gemini said he does not see stablecoins coming up strong until Wall Street embraces DeFi.
His words: “When Wall Street wants to start investing in decentralized finance, they’ll need a currency. When a decentralized [Real Estate Investment Trust] pays off a dividend or a stock, is it going to pay it to investors in Ether? Probably not because of the volatility, but in a stablecoin.”
But Tyler is quite impressed with stablecoin projects that have started. He said:
“A lot of these stablecoins, they just put their own cash deposits to goose up the assets under management to give this perception that it’s bigger than it is. I think it’s kind of bullshit. People see through it.”
High Interest Rate is Key to Crypto’s Acceptance
Tyler also talked about how crypto assets use interest rates to determine their market value. People who stake or take part in DeFi are the major beneficiaries even in a bad economy.
He said: “Super important in this environment with zero interest rates, maybe negative interest rates, potentially hyperinflation, [is] the ability to earn yield anywhere like 5%, 6%, whether it’s staking or you know, a DeFi money market.”
Tyler revealed that his company is not left out in the plans to make crypto assets the goldmine and to make DeFi come quickly. He said Gemini also has plans to offer both savings and trading services for crypto assets.
However, Tyler does not think that a sophisticated crypto app is going to come soon. This means it may still take a long time for a competitive stablecoin market to emerge. This is how he put it:
“I don’t see that mainstream killer decentralized app right now that all of my crypto and non crypto friends are coming onto blockchains to use.“