Consensus 2025 – Stablecoins Are The Future of Money 

TLDR

• Consensus 2025 was this week in Toronto.
• Kevin O’Leary delivered a keynote and spoke on the importance of stablecoins shaping the future of finance.
• Mark Greenberg from Kraken and Jack McDonald from Ripple also took to the stage to discuss the future of stablecoins, their value, and how they can potentially evolve.

Consensus 2025, CoinDesk’s flagship conference, brought global industry leaders and crypto enthusiasts to Toronto, a city emblematic of financial innovation. With North America’s third-largest tech ecosystem and a rich history in crypto, Toronto proved an ideal location to discuss the intersection of blockchain technology, artificial intelligence, and digital currencies. 

Among the standout topics this year were stablecoins, a pivotal conversation point that captured the attention of attendees and speakers alike, positioning stablecoins as essential for the next phase of the financial revolution.

Kevin O’Leary’s Insightful Opening Keynote 

Kevin O’Leary, a household name in finance and investing, captivated the audience with a sharp and unfiltered assessment of current market conditions. We got super excited for this one. Everyone on the DC team are huge Shark Tank fans, and Mr. Wonderful rarely disappoints. 

His keynote provided straight-talking commentary and addressed some of the most pressing challenges in the cryptocurrency industry. 

“I never thought I’d say this, but I want more regulation. And I want it now,” O’Leary stated, signaling an industry-wide call for clarity and trust-building measures. Institutions, he argued, remain hesitant to pour significant capital into crypto due to regulatory ambiguities. “We have hit a wall on assets under management (AUM). We can’t convince institutional capital to enter this space the way it could.”

His perspective on stablecoins underpinned his vision for the future. O’Leary emphasized why regulatory approval, particularly for instruments like stablecoins, could serve as a tipping point for crypto adoption. “The GENIUS Act is key,” he explained, referring to proposed legislation in the U.S. that would authorize a regulated, USD-backed stablecoin capable of transforming the way global currencies operate. 

O’Leary made a compelling case for stablecoins to modernize an outdated global forex market, citing inefficiencies in a system where transfer mechanisms are decades old. “The biggest threat to financial services is a regulated stablecoin. Currency trading is a multi-trillion-dollar market, and stablecoins could make it efficient, transparent, and inexpensive,” he said. 

To put that into perspective, the US stock market does roughly $15 billion a day in volume. The forex market does around $6 trillion. 

His points also took aim at the credit card industry, explaining how stablecoins could eliminate transaction fees for small businesses. “If you’re a small business in America paying 2.5-3% in credit card fees, imagine the landscape with zero fees using stablecoins. Who do you think is worried about this? The financial services industry. They hate it, and they are working very hard to stop this bill right now.”

The Stablecoin Debate: More Than a Currency 

Later in the day, Mark Greenberg, Global Head of Consumer at Kraken, and Jack McDonald, SVP of Stablecoins at Ripple, brought the discussion to the panel stage to explore stablecoins from their respective leadership positions. Their viewpoints expanded on O’Leary’s earlier remarks while highlighting concerns about market structure and innovation. 

Greenberg voiced palpable concerns regarding centralization in the stablecoin ecosystem. “I think it’s unsustainable and worrisome if two big centralized players hold most of the stablecoin market. This is supposed to be a decentralized industry. Why should they hold all the yield?” 

His words underscored a central tension in stablecoin discourse. Despite being a decentralized alternative, the stablecoin market’s largest players dominate, leaving less room for smaller or decentralized systems. 

McDonald offered complementary insights, calling stablecoins a gateway to meaningful innovation in global payments. “Stablecoins have undeniable advantages. It’s not just about disruption; it’s more about evolution than revolution. Systemic changes come with time.”

The tension between innovation and regulation came through in Greenberg’s belief that regulatory work is not just necessary but advantageous. “We have a lot of regulatory work ahead of us, and that’s a good thing. Deposits with stablecoins should yield returns like any other deposit system.”

Transformative Potential 

The hot-button issue remains whether regulatory approval or technological evolution will dictate stablecoin adoption timelines. Both O’Leary’s bullish outlook and the balanced panel ties between Kraken and Ripple pointed toward the untapped potential in addressing inefficiencies plaguing global finance. 

Before stablecoins can replace traditional systems and fees, hurdles concerning transparency, centralization, and accessibility must be addressed. 

Toronto’s hosting of Consensus 2025 offered more than just a backdrop steeped in innovation. It underscored that progress requires momentum from all fronts — regulators, industries, and communities working to redefine the economy’s foundations. 

Kevin O’Leary wrapped his thoughts with a stark reality check concerning the overall vision for digital assets. “It’s got nothing to do with Bitcoin. It’s digital payment systems. That’s the potential. That’s the amazing opportunity we have here.”