Nick van Eck of Agora on the Revolutionary Potential of Stablecoins

Nick van Eck, the CEO and co-founder of Agora, has witnessed firsthand the challenges posed by currency debasement and inadequate financial systems in emerging markets. With Agora's flagship stablecoin, AUSD, van Eck aims to address these issues by providing a simple yet powerful tool for individuals in countries like Argentina and India to save money without worrying about inflation or capital controls. Van Eck's background as a tech investor and his family's history in the gold sector have influenced his perspective on the potential of stablecoins to drive positive change. In a recent conversation, van Eck discussed the evolving role of stablecoins, the factors driving their adoption, and Agora's approach to building blockchain-based payment infrastructure. He emphasized the importance of 'credible neutrality' and shared his vision for the future of stablecoins in emerging markets. Van Eck's journey into the world of blockchain-based payments began when he was exposed to Bitcoin in 2016. He was drawn to the concept of 'digital gold' and the potential for an open financial system. After working as a tech investor for several years, van Eck was inspired by the DeFi summer of 2020 and the emergence of applications like Uniswap and Aave. He decided to leave his role at a VC firm to start Agora, with the goal of creating a stablecoin that could provide a reliable means of saving and transacting for individuals in emerging markets. Van Eck's travels, including a recent trip to Patagonia, have deepened his understanding of the challenges faced by people in these regions and reinforced his commitment to Agora's mission. When asked about what sets Agora and AUSD apart from other stablecoins, van Eck emphasized the importance of 'credible neutrality.' He explained that Agora's focus is on building the best digital dollar network without competing with its customers, and that the company shares revenue with the underlying applications or businesses using AUSD. Van Eck believes that stablecoins are critical to the crypto ecosystem, particularly in Asia, where they provide a stable unit of account in regions with limited access to financial services and volatile local currencies. He noted that stablecoins enable wealth preservation, lending, and other financial services, and offer opportunities that traditional systems cannot. However, van Eck acknowledged that regulation is a major hurdle to widespread adoption, and that businesses need clarity on legal and compliance frameworks. Despite these challenges, van Eck is optimistic about the future of stablecoins and their potential to drive positive change in emerging markets. He sees Asia as a key driver of stablecoin adoption, with its high demand for cross-border payments and latent dollar demand. Van Eck believes that the Asian market will shape global trends for stablecoins, and that Agora is well-positioned to play a significant role in this growth. Over the next decade, van Eck predicts that the majority of cross-border payments will transition to stablecoins, and that foreign exchange trading will increasingly settle on-chain. He is excited about the potential for blockchain-based payments to evolve and improve the lives of people around the world.