“Knowledge Winner” celebrity Kevin O’Leary (Kevin O’Leary), also known as Mr. Wonderful, said that once there are clearer regulations around stablecoins, he will be ready to increase his cryptocurrency distribution to 20%.

O’Leary, former Bitcoin (Bitcoin) Skeptics, are now staunch supporters of cryptocurrencies, which currently account for more than 10% of their portfolio.

Mr. Wonderful pays special attention to the stable currency linked to the US dollar, which he believes is an effective tool for hedging the level of inflation. He pointed out that by collateralizing stablecoins, he can get a return of up to 6%. He explained to Cointelegraph:

“When the inflation rate is 6%, your purchasing power will decrease by 6% after 12 months. That’s a lot […] I am a strong advocate of using stablecoins to solve this problem. “

A clear regulatory framework will enable O’Leary to convert large cash positions into stablecoins. However, currently, due to regulatory restrictions, he cannot invest more than 5% of his funds in stablecoins.

“My own compliance department considers stablecoins to be an equity that is indistinguishable from stocks,” he said.

According to O’Leary, many institutional investors are excited about stablecoins, they “work quietly in the background” and wait for regulators to take action.

In addition to stablecoins, Mr. Wonderful also invested in Bitcoin and Ethereum (Ethereum) And other cryptocurrencies. However, he claimed that due to their potential volatility, these cryptocurrencies are unlikely to constitute a large part of institutional investors’ investment portfolios.

“Under institutional or sovereign authorization, you won’t reach 20% or 30% of Bitcoin, you just don’t. Stablecoins have this potential,” he explained.

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