The stablecoin market could be dominated by decentralized variants, if cryptocurrencies reach their true potential, believes Rune Christensen, co-founder of decentralized finance (DeFi) pioneer MakerDAO. Christensen recently spoke with Cointelegraph’s Andrew Fenton at the Token 2049 conference in Singapore, shedding light on the future of stablecoins and their integration into mainstream finance.

Betting on Decentralized Stablecoins

During the conversation, the two touched upon a presentation by Castle Island Ventures partner Nic Carter, who predicted that interest-bearing stablecoins could constitute up to 30% of the market in two years. Christensen concurred, albeit with a caveat—much would depend on macroeconomic conditions like high inflation rates.

“If high inflation and high rates continue, then probably stablecoin dominance will increase,” Christensen said.

Centralized vs. Decentralized: A Market Ready for Transition?

When probed about the competition between centralized and decentralized stablecoins, Christensen was optimistic:

“Easily. I mean, I think if the space ends up living up to its potential, then decentralized stablecoins will be the entire market, while centralized stablecoins will serve as connectors to the legacy financial system.”

Regulatory Influence and the ‘Killer Advantage’

Christensen further noted that if cryptocurrency markets become adequately regulated, centralized stablecoins could enter mainstream usage. However, he emphasized that the “real killer advantage” for decentralized stablecoins like DAI lies in their ability to “gamify your savings.”

MakerDAO’s Future Roadmap and Endgame Plan

Earlier this year, MakerDAO introduced an “Endgame Plan,” aiming to transition DAI into a free-floating asset initially backed by real-world assets (RWA). A three-year period would see the protocol focus on accumulating as much Ether (ETH) as possible to bolster its decentralized collateral ratio.

Christensen lamented the fact that Maker, despite its solid foundation, has been overshadowed by “scammy and illegitimate projects.” To counter this, he aims to make the platform more appealing to younger users by introducing gamification elements.

“Things are designed like a game, and that’s the kind of interface people will use,” Christensen argued.

The Bottom Line

In a rapidly evolving crypto landscape, the role of stablecoins continues to gain importance, especially against the backdrop of fluctuating market conditions and increasing regulatory scrutiny. While centralized stablecoins may serve as gateways to the traditional financial ecosystem, Rune Christensen believes the future belongs to decentralized stablecoins. Their potential to offer a gamified approach to financial management might just be the edge they need to dominate the market in the years to come.