Remember the old days when calling or sending a message by text abroad is worth the money? With the help of modern messaging apps like WhatsApp, payment for cross-border calls and text is no longer used.
For money transfer, Stablecoins: Democrats the payment industry by removing historical gatekeepers, says venture firm Andreessen Horowitz (A16Z).
“As the WhatsApp interrupted of costly phone calls, blockchain payments and stablecoins change global money transfers,” the firm said in a blog post on Wednesday.
The current global payment infrastructure is a complex web involving sale points, payment processors, banks getting banks, banks, respective banks, foreign exchanges, and card networks.
Read more: What is a stablecoin?
To make things more difficult, each of the mediators charged the fees and introduces the delays, making international transactions complicated. For example, A16Z said remittance fees can reach up to 10%-such as cross-border calls or text used to be strict before instant messaging apps played.
Enter Blockchain and Stablecoins -Cryptocurrencies are on the property -owners like the US dollar.
“Stablecoins offers an alternative clean slate. Instead of stitching together clunky, costly, and outdated systems, Stablecoins flows seamlessly on top of global blockchains,” the blog post said.
“NASA, Stablecoins slows down the cost of remittances: Sending $ 200 from the US to Columbia using traditional methods costs you $ 12.13; with stablecoins, it costs $ 0.01.”
And, these are not just remittances where stablecoins remove efficiency; This will help boost B2B payments to a massive size. A16Z uses business transactions from Mexico to Vietnam as an example, which takes three to seven days to process and cost anywhere between $ 14-to- $ 150 per $ 1000 transacted. They go through many five intermediaries along the way, each of which takes a cut.
Stablecoin adoption can make such transactions almost free and instant, it says.
Some corporations were detected, and the Elon Musk space was Using stablecoins already To manage their corporate treasury to protect themselves from volatility of FX.
So, it should not surprise anyone to see that the total market cap of stablecoins passed $ 200 billion or that the annual amount of Stablecoins transaction in 2024 hit $ 15.6 trillion – Excessive 119% and 200% of Visa and MasterCardrespectively.
However, increasing stablecoins has no challenges.
The regulations that bodies have reviewed their use, making it “incredible -it is difficult” to bridge traditional finances in Stablecoins, A16Z says. The scene today is finally emerging, as policy manufacturers are actively shaping policies to identify and organize Stablecoins in the US “an upcoming bill that clarifies this regulation can provide a way for greater adoption and integration with the global financial system,” the blog said.
With rapidly changing the financial scene and the crypto that becomes more mainstream, stablecoins can be the strength of the transformation that changes the future of money.
“As WhatsApp interferes with costly phone calls, blockchain payments and stablecoins change global currency transfers,” A16Z added.
Read more: The US House committee is advancing the Stablecoin Bill, while Dems warns Trump’s conflicts
