Having traveled extensively to many emerging markets, Nick van Eck, the CEO and co-founder of stablecoin issuer Agora, is well aware of the problems that currency devaluation and the lack of a sound financial system can create for to the citizens of these countries.
With AUSD, Agora’s flagship stablecoin product, van Eck is focused on solving the unique challenges these countries 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 but 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 largest gold mining funds in the world. From the very 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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Ahead of 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. In addition, he described Agora’s approach to building a blockchain-based payment infrastructure and the importance of what he called “credible neutrality.” The following is a partially edited transcript of our discussion.
What was your journey from being a technology investor to starting Agora? What sparked your interest in blockchain-based payments?
I started my investment career at the private equity firm JMI Equity and knew I wanted to be an investor from a young age. I was working at a hedge fund in 2016 when I was first 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 went on to work as a tech investor for years.
During the DeFi summer of 2020, I was drawn back to crypto as applications like Uniswap and Aave made the idea of an open financial system tangible. For many around the world, these tools are better than their current financial systems. Blockchain allows people to save and earn money in ways that weren’t possible before, and it feels like the start of a revolution. So, about a year ago, I left the VC firm General Catalyst to start Agora.
How have your travels, including your most recent 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 much more limited than what Americans often take for granted. Spending time in places like Argentina or India made it clear to me how different 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 important 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 even though I haven’t experienced them myself, those experiences have made me very real with the realities of financial instability in a way that’s more than 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 does not have any partners, and PYUSD is essentially a PayPal subsidiary designed to compete with various remittance companies. We are like a vanilla fiat coin. We take a dollar, mint an AUSD, and that dollar is in a bank account somewhere. Our focus 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 businesses that use AUSD.
Why are stablecoins so important in the crypto ecosystem, especially in Asia?
Stablecoins are the lifeblood of the crypto economy, just like 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 is often misunderstood is that stablecoins are not 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 mass adoption?
Regulation is the main obstacle. Businesses are eager to use stablecoins because of their cost efficiency and speed, but they need clarity on legal and compliance frameworks, such as knowing who the licensed providers are. Stablecoins have gained traction in crypto-native spaces, but still have untapped potential in traditional markets such as cross-border payments and B2B transactions. I think this is just the beginning of what will 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 US dollars in trade, savings or transactions . There are many different countries in Asia, many of which are really rich but have a lot of high demand for the dollar. Southeast Asia, in particular, has a younger, underbanked population that is always on the lookout for more competitive financial services. With a smartphone, these people can access relatively attractive dollar-denominated opportunities like Aave and similar DeFi protocols without the need for a bank account.
How does Asia differ from regions like the US or Europe?
The main difference is access to US banks. In the US, financial services are readily available. Stablecoins fill a huge gap in Asia, however, offering a dollar-based financial tool for those without access to traditional banking. That’s why our focus is completely on markets outside the US In Hong Kong, you have a good financial ecosystem, but outside of that developed market, there’s a lot of opportunity to provide better products in finance.
How do you see blockchain-based payments evolving over the next decade?
I think you’ll see most cross-border payments move to stablecoins versus the banking system using Swift today. You will also find many foreign exchange trading settled on-chain. We are excited to play very important roles in both parts of those growth markets.
