*The original interview is from Around the Coin, aired on April 18, 2025!
Stephen: It's about doing those things that look cooler and more exciting rather than doing what is considered traditional or boring, just like the functions that Bitcoin and WAX have.
I think we have a few minutes left. I want to talk to you about regulation, especially the regulation of stablecoins. Your co-founder previously worked at Tether; what kind of regulation do you think this field will face? What’s your view on the current regulations? Could these regulations stifle some innovations and turn the usability of stablecoins into something like traditional banking regulations? For instance, requiring large reserves, could that hinder the innovation of stablecoins, especially those looking to enter the countries you mentioned earlier?
William: First of all, I think the term 'regulation' is quite vague, right? I try not to use that term because I'm not sure myself. Different societies have different regulations for businesses. Every time I hear someone say cryptocurrency is unregulated, I think, buddy, are you crazy?
Cryptocurrency companies have to comply with thousands of regulations. Banks may have to adhere to some rules that cryptocurrency companies don’t have to follow, and so do stock issuers. But that's because they are fundamentally different. So I think the best form of regulation is transparency and accountability.
Right? Terra Luna did not achieve these two points, right? It was built on... For your audience, stablecoins have three types of collateralization methods. Terra Luna chose the worst one, and the result was inevitable failure. The Trump administration largely supported stablecoins most of the time, although interestingly, the Federal Reserve, as a central bank, has a rather negative view of stablecoins.
I also don't quite understand why. But ultimately, as I said earlier, all fiat currencies and central banks should eventually issue stablecoins. But looking at the new regulations being implemented in the US and the voluntary compliance with KYC (Know Your Customer) regulations...
Tether is a special case; it was the first stablecoin and pioneered this category. What it publishes now is basically a balance sheet that shows what’s behind it. I believe all stablecoins should have proof of reserves and support. This is also what the current US legislation on stablecoins requires, and I agree with this because it is easy to do and everyone can accept it.
What I want to say is that this situation could happen. I don't know if it will happen in the next ten years, but many multinational companies may have their own stablecoins because it makes so much sense. This is actually a good thing. The most valuable aspect of stablecoins, which most people haven't delved into, is the high currency exchange costs we usually bear. We actually aren't quite clear on how high this cost is. The global economy is about $100 trillion per year, with $1 trillion eaten up by currency exchange costs, which essentially accounts for the profits of 5,000 financial institutions globally, and these institutions have very close relationships with governments.
So the benefit of cryptocurrency is that if all stablecoins were to be cryptocurrency-based, we wouldn't need to exchange currency anymore. I could send cryptocurrency-based dollars to people in Japan, they could hold onto it, and then use those dollars to buy things from people around the world without bearing the burden of currency exchange. That's why I think many multinational companies incur currency conversion costs when settling cross-border transactions.
Stephen: Are you saying that even within their own organizations, this situation exists?
William: Exactly. If most of your income is in yen but you have to pay some workers in dollars in California, then you need to exchange currency right now. Not everyone wants to convert all currencies into cryptocurrency. Yes, at least until we can freely use any currency for consumption and payment.
However, companies will definitely like this model. But I think it will take time. Even for payment companies like PayPal, it took a full 15 years to finally decide to adopt stablecoins. And the reality is that Tether is the largest cryptocurrency by trading volume globally.
In my view, stablecoins are the real 'main event' of blockchain. Stablecoins will become the most traded asset, and they already are, and their trading volume will continue to grow. I believe the greatest contribution of blockchain to the world is the invention of stablecoins.
Stablecoins are not going away. Once the US establishes a regulatory framework for stablecoins, other big companies will follow suit. The US is doing this, and we need to keep up.
Stephen: Yes, it is indeed a 'thorn in the heart.' It's like dealing with the US but not being able to use the relevant currency in the way you want. You know, this is a hindrance for many global businesses. Speaking of which, this is the spirit of cryptocurrency. When I first entered the field in 2016, everyone was talking about banking, the shortcomings of banking, and those who lacked access to banking services. But in reality, it seems we have never truly solved this problem. It wasn't until stablecoins were widely adopted that we saw that in Nigeria, you can't easily get dollars from a bank, and you might never get them.
In contrast, in the United States, you can use cash from various different countries. But did you know that in some places around the world, it's almost impossible to get US dollars? If you can't send money in dollars, doing business becomes difficult.
William: Yes. If we really dive into it, we could talk for a long time.
Stephen: William, I think we need to schedule another time. Maybe in a few months, we’ll invite you back for a second episode. Today we have limited time, but please share what you are currently working on, whether it's WAX or something else in the industry that excites you. William, please tell us, leave some suspense for the audience and set the stage for our next conversation.
William: Let me approach it from two angles. First, regarding WAX, I still have passion and confidence in video games; it's one of the largest consumer activities in the world, with 3 billion people playing video games globally. I'm still very much looking forward to what blockchain can bring to video games.
But as I mentioned at the beginning, issues with user interfaces and operational difficulties have hindered a lot of development. That's why WAX remains very focused on the gaming sector. This is also the reason why its daily trading volume can stay at fifth or sixth place, sometimes even climbing to second, especially after removing those meme-type transactions.
However, it has not truly experienced an explosion yet. So we will continue to focus on this area. Speaking of 2025, everyone should know that all of you here should also be aware that this should be the year following the 2024 Bitcoin bull market. Traditionally, if past patterns continue, the bull market will end in November 2025.
From start to finish, there’s roughly an 18-month cycle. The IT integration of Bitcoin started in April 2024 and might end in 2025, but we haven't seen this happen yet, which is indeed concerning. However, we are entering a new era. If by the end of April this year, Bitcoin's price hasn't risen to $200,000, I'm not saying it will definitely rise to that price, just as an example; if it hasn't, that means Bitcoin's price would need to double, which seems unlikely.
But if it really doesn't happen, we would completely break the previous model and enter an unknown territory. So, September and October, perhaps both are possible. If Bitcoin doesn't see this situation, we can discuss it again. Remember, where Bitcoin goes, other cryptocurrencies often follow. If Bitcoin finishes its rise without leading to a bull market, I think that could mean it might take until 2026. If that doesn't happen, and if a bull market arrives as expected, then we're fine. If by 2026, who knows, maybe Wall Street will lose interest, right? Many people might stop paying attention. Our industry might be reshuffled, possibly returning to practicality and reducing crazy speculation, which is unpredictable.
But this year is crucial. Because if Bitcoin’s increase is not much different from traditional stock increases, then what’s the point of holding Bitcoin? So, I will still focus on achieving the 'living model' after Bitcoin, but I also understand that if things don't progress in a good direction, some people will think, I need to join in when the situation changes; maybe I'll catch some new opportunities. This industry will continue to develop until 2026.
Stephen: I like your perspective. I think that regarding so-called 'utility cryptocurrencies,' actually, every one that claims to be a utility cryptocurrency has little practical use. I believe that those who truly know what they are doing are the ones who create something useful.
William: You're absolutely right. The reason we created WAX was based on this. The way we did WAX is the same as how we approached the market. We first built the blockchain and then constructed the wallet. We were the first company to allow users to log in and out using very simple methods like OAuth, making it particularly easy to operate. After that, we created the marketplace.
We hope this is like Apple, providing users with phones, applications, and payment methods. If you just give people a chain and let them build something that will never run, that's not a complete system at all. Therefore, these blockchains targeted at specific industries can allow people to create truly useful tools. Perhaps when the frenzy of speculation starts to fade, this will become a bigger focus. I think this will be better for entrepreneurs. Because how can you ensure that your cryptocurrency won't crash or be manipulated by certain exchanges? You just don't know. But what you can control is enabling people to do what you think they might want to do.
So perhaps this is the future direction of blockchain. Frankly, this could eliminate a lot of criticism against blockchain. You're right; most practical cryptocurrencies are like this. During the 2017 ICO boom or the 2020 ICO bubble, we saw too many instances of people claiming they could allow users to use their cryptocurrency as a payment mechanism. Really? What kind of innovation is that? It's like anyone can do that.
Stephen: You've made a great point, William. Where can everyone find you? Where have you expressed similar thoughts? Your views are persuasive and can lead people to reflect on what might happen in 2025 and 2026. I think this will surely make many people think deeply. If someone wants to contact you and keep up with our mutual thoughts, where should they look for you?
William: I mainly speak on podcasts or websites like CNBC. I also have a Twitter account called William E. Quigley where I post articles. However, I'm not as prolific as you and haven't created much content. I could probably create more, but I've been busy with product development; you know, that's a full-time job. Content creation is also a full-time job.
Stephen: That's right, it really is a full-time job. You know, I really appreciate the way you work diligently in the building. This way, content creators like me can engage with interesting people. Otherwise, we would only be chatting with other content creators, and no one could provide anything truly practical...
William: In fact, I often think about saying more, but I feel that just like having a conversation with you, to create something good, one must have strong discipline, put in a lot of effort, and prepare a lot. So, perhaps, if cryptocurrencies don't develop as people expect, I might have more time.
Stephen: William Quigley, keep an eye on the content creation field in 2026. Thank you very much for joining our show. In a few months, we'll ask you back to discuss some of your previous predictions in depth. Let's also talk about artificial intelligence and delegated proof of stake; I think that's a particularly interesting concept.
Perhaps we can also talk about whether Ethereum is losing its former glory? I know you believe that. You have many interesting topics to discuss. William, thank you for joining the (Around the Coin) podcast; we can't wait to invite you back.
William: You're welcome, thank you.
*Disclaimer: This article is for educational purposes only and does not constitute any investment advice!