Stablecoins Could Power Global Payments: Druckenmiller

Druckenmiller founded Duquesne Capital Management in 1981 and closed the fund in late 2010. During that time, he achieved an average annual return of 30% and never experienced a down year.

Druckenmiller said back in May 2021 that a blockchain-based system could replace the payment rails that power the US dollar due to a lack of trust in the traditional banking system.

“Well, the problem has been clearly identified. It‘s Jerome Powell and the rest of the world, central bankers. There’s a lack of trust,” he told CNBCs Squawk Box at the time.

Several traditional payments firms, 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 provided a clear regulatory framework for payment firms to offer digital asset services.

Drunkenmiller not sold on crypto as a store of value

Despite Druckenmiller‘s conviction on blockchain and stablecoins, he isn’t convinced that cryptocurrencies like Bitcoin (BTC) can function as a store of value.

“It‘s a solution looking for a problem. I’m very sad that it ever happened,” Druckenmiller told Morgan Stanley.

“It wasnt needed,” but crypto has become a brand that some people love, so it will function as a store of value to them, he said.

Back in October 2023, Druckenmiller said he compared Bitcoin to gold, stating that he prefers the latter because it is a “5,000-year-old brand.”

Druckenmiller went on to say that he doesnt own any Bitcoin, but that he should.