Having travelled extensively through many emerging markets, Nick van Eck, the CEO and co-founder of stablecoin issuer Agora, is keenly aware of the problems that currency debasement and a lack of sound financial systems can create for citizens of these countries.
With AUSD, Agora’s flagship stablecoin product, van Eck is focused on solving the unique challenges these nations face. “With stablecoins, people in places like Argentina or India can save money without worrying about inflation or capital controls,” van Eck said in a recent interview with CoinDesk. “It’s a simple yet revolutionary tool that can change lives, especially when and where traditional banking systems fall short.”
Van Eck has extensive experience as a tech investor and a family background in the gold sector — vanEck, the fund company founded by his grandfather, manages one of the world’s largest gold mining funds. Early on, Nick van Eck recognized BTC’s potential as a store of value and aligned himself with the principles of early Bitcoiners.
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Fresh off a two-week trip with his family to South America’s Patagonia region, van Eck spoke about the evolving role of stablecoins in emerging markets, the catalysts driving stablecoin adoption and the unique dynamics of the Asian market. In addition, he described Agora’s approach to building blockchain-based payment infrastructure and the importance of what he calls “credible neutrality.” What follows is a lightly edited transcript of our discussion.
What’s been your journey from a technology investor to starting Agora? What sparked your interest in blockchain-based payments?
I started my career investing at the private equity firm JMI Equity and knew I wanted to be an investor from an early age. I was working at a hedge fund in 2016 when I first got exposed to Bitcoin. The concept of Bitcoin as “digital gold” resonated with me, and I shared many beliefs with early Bitcoiners. That’s when I first got involved, but I continued to work as a tech investor for many years.
During the DeFi summer of 2020, I was drawn back into crypto as applications like Uniswap and Aave made the idea of an open financial system tangible. For many globally, these tools were better than their existing financial systems. Blockchain enables people to save and earn money in ways that weren’t possible before, and it felt like the start of a revolution. So, about a year ago, I left VC firm General Catalyst to start Agora.
How have your travels, including your latest trip to Patagonia, influenced your vision for Agora?
I feel very fortunate to have traveled to parts of the world where access to financial services and opportunities is far more limited than what Americans often take for granted. Spending time in places like Argentina or India has made it clear to me just how diverse the world is in terms of opportunities and challenges. The idea of providing a financial instrument that allows someone to save money without worrying about inflation is incredibly valuable in places like Patagonia and Argentina. My grandmother was an immigrant who had a difficult childhood, growing up in conditions shaped by hyperinflation, capital controls and other financial challenges. I’ve seen similar situations in my travels, and while I didn’t live through them myself, those experiences made the realities of financial instability very real to me in a way that goes beyond intellectual understanding.
What sets Agora and AUSD apart from other stablecoins like USDT or PYUSD?
Firstly, we are credibly neutral. USDC, for example, shares half its income with Coinbase. Tether doesn’t have any partners, and PYUSD is essentially a PayPal subsidiary designed to compete with various remittance companies. We’re like a vanilla fiat coin. We take in a dollar, mint one AUSD, and that dollar is in a bank account somewhere. Our focus from day one has been to stay credibly neutral and concentrate on building the best digital dollar network without competing with our customers. We believe in an open model where we share revenue with the underlying applications or businesses using AUSD.
Why are stablecoins so critical to the crypto ecosystem, especially in Asia?
Stablecoins are the lifeblood of the crypto economy, just as money is for any economy. In Asia and Southeast Asia, they provide a stable unit of account in regions where access to financial services is limited and local currencies often face volatility. What’s often misunderstood is that stablecoins aren’t just about trading — they enable wealth preservation, lending and other financial services. For many people in emerging markets, they offer opportunities that traditional systems cannot.
What challenges do stablecoins face in achieving widespread adoption?
Regulation is the main hurdle. Businesses are keen to use stablecoins due to their cost efficiency and speed, but they need clarity on legal and compliance frameworks, like knowing who the licensed providers are. Stablecoins have gained traction in crypto-native spaces, but there’s still untapped potential in traditional markets like cross-border payments and B2B transactions. I think this is just the beginning of what’s going to be a twenty-year journey of mass adoption.
How do you see the Asian market shaping global trends for stablecoins?
Asia is uniquely positioned to drive stablecoin adoption due to its high demand for cross-border payments and latent dollar demand, a strong but unmet need for access to U.S. dollars in trade, savings or transactions. There are a lot of different countries in Asia, many of which are really wealthy but have a lot of high dollar demand rates. Southeast Asia, in particular, has a younger, underbanked population always on the lookout for more competitive financial services. With a smartphone, these people can access pretty attractive dollar-denominated opportunities like Aave and similar DeFi protocols without needing a bank account.
How is Asia different from regions like the U.S. or Europe?
The key difference is access to U.S. banks. In the U.S., financial services are readily available. Stablecoins fill a significant gap in Asia, however, offering a dollar-based financial tool for those without access to traditional banking. That’s why our focus is entirely on markets outside the U.S. In Hong Kong, you have a pretty good financial ecosystem, but outside of that developed market, there’s a lot of opportunity to provide better financial products.
How do you see blockchain-based payments evolving over the next decade?
I think you’ll see the majority of cross-border payments transition to stablecoins as opposed to the banking system using Swift today. You’ll also see a lot of foreign exchange trading settle on-chain. We’re excited to play very significant roles in both parts of those growth markets.
