Having traveled extensively in many emerging markets, Nick van Eck, CEO and co-founder of stablecoin issuer Agora, is well aware of the problems that currency debasement and lack of robust 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 is a simple but revolutionary tool that can change lives, especially when and where traditional banking systems fall short.”
Van Eck has extensive experience as a technology investor and a family background in the gold sector: vanEck, the fund company founded by his grandfather, manages one of the largest gold mining funds in the world. From the beginning, Nick van Eck recognized the potential of BTC as a store of value and aligned himself with the principles of early Bitcoiners.
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Fresh from a two-week trip with his family to the Patagonia region of South America, 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. Additionally, he outlined Agora’s approach to building blockchain-based payments infrastructure and the importance of what he calls “credible neutrality.” What follows is a lightly edited transcript of our discussion.
What has been your journey from a technology investor to starting Agora? What sparked your interest in blockchain-based payments?
I began my career investing at 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 was first introduced 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 working as a technology investor for many years.
During the DeFi summer of 2020, I returned to cryptocurrencies as apps like Uniswap and Aave made the idea of an open financial system tangible. For many around the world, these tools were better than their existing financial systems. Blockchain allows 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 the venture capital 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 opportunities and services is much more limited than Americans often take for granted. Spending time in places like Argentina or India has made it clear to me 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 and grew up in conditions marked by hyperinflation, capital controls, and other financial challenges. I’ve seen similar situations in my travels, and while I didn’t live them myself, those experiences made the realities of financial instability very real to me in a way that goes beyond intellectual understanding.
What makes Agora and AUSD different from other stablecoins like USDT or PYUSD?
First, we are credibly neutral. USDC, for example, shares half of its revenue with Coinbase. Tether has no partners and PYUSD is essentially a subsidiary of PayPal designed to compete with various remittance companies. We are like a vanilla fiat currency. We receive a dollar, we mint an AUSD and that dollar is in a bank account somewhere. Our approach from day one has been to remain credibly neutral and focus 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 companies that use 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 to 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 is often misunderstood is that stablecoins are not just for 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 obstacle. Businesses are interested in using stablecoins due to their cost-effectiveness and speed, but need clarity on legal and compliance frameworks, such as knowing who authorized vendors are. Stablecoins have gained traction in crypto-native spaces, but there is still untapped potential in traditional markets like cross-border payments and B2B transactions. I believe this is just the beginning of what will be a twenty year journey of mass adoption.
How do you think the Asian market is shaping global stablecoin trends?
Asia is uniquely positioned to drive stablecoin adoption due to its high demand for cross-border payments and latent demand for dollars, a strong but unmet need for access to US dollars in trade, savings or transactions. There are many different countries in Asia, many of which are really rich but have very high dollar demand rates. Southeast Asia, in particular, has a younger, underbanked population, always looking for more competitive financial services. With a smartphone, these people can access quite attractive dollar-denominated opportunities, such as Aave and similar DeFi protocols, without needing a bank account.
How is Asia different from regions like the United States or Europe?
The key difference is access to US banks. In the United States, financial services are easily available. However, stablecoins fill an important gap in Asia and offer a dollar-based financial tool for those without access to traditional banking. That’s why our focus is entirely on markets outside the US. In Hong Kong, there is a pretty good financial ecosystem, but outside of that developed market, there are a lot of opportunities to offer better financial products.
How do you think blockchain-based payments will evolve over the next decade?
I think you’ll see most cross-border payments transition to stablecoins rather than the banking system using Swift today. You will also see many currency transactions settle on-chain. We are excited to play very important roles in both parts of those growing markets.
