Most people fundamentally misunderstand stablecoins They think of specific use cases: e-commerce, remittances, cross-border payments, DeFi, etc But it’s more fundamental than that Stablecoins are a backend upgrade to the dollar itself Bringing the cash-like qualities of immediate finality and bearer-asset control to the internet itself This is more than a 10x upgrade: - Instant, irreversible settlement: no multi-day settlement delays or chargebacks, removes unimaginable amounts of backend friction - Global accessibility: anyone with an internet connection can send / receive value to any one else instantly, creating growing network effects - Always-on availability: dollars move at the speed of the internet, 24/7/365, no holiday or banking hours preventing transfers - Near-zero fees: transfers cost a fraction of a cent as blockchains become increasingly commoditized in terms of throughput and speed - Self custody management: dollar-denominated assets can be held outside of any financial institution, by both humans and AI systems - System interoperability: any wallet can transfer value to any other wallet or any application, eliminating system fragmentation or walled gardens - Onchain composability: natively interact with any smart contracts, providing access to autonomous financial service protocols (yield, loans, leverage, etc) - Enhanced programability: any combination of ‘if/then’ logic flows can be codified into the stablecoin itself, enabling real-time salary streaming, digital escrow, conditional royalties, etc - Transparent auditability: real-time proof of funds and flows, frictionless compliance automation and regulatory reporting — With the GENUIS bill soon being signed into law, clear regulations around the issuance of stablecoins in the U.S. is coming This will not only unlock the floodgate of institutions waiting on the sidelines to issue their own stablecoins, but standardize what a “stablecoin” actually is In effect, all U.S. stablecoins become largely commoditized—each conforming to same reserve requirements, consumer protections, risk controls, compliance, federal oversight, etc The primary difference between stablecoins then becomes simply distribution (how many people hold it) and integrations (what you can do with it) But even for the end-users, this complexity will be abstracted away as stablecoins can be instantly converted into any other stablecoin upon receipt by another wallet or app From a users’ perspective, they will use the same banking and FinTech applications they always have, just now with instant, global, and programmable payments Stablecoins are not a crypto use case, they are the new digital dollar