Most technological revolutions begin with a simple idea, but the key is not in the initial simplicity, but in how it expands to change the world. The internet was once just a simple information exchange system. Then it exploded, reshaping everything from communication, commerce to how we connect with each other. Stablecoins are at a similar starting point.
Stablecoins: Growth That Cannot Be Ignored
In 2020, stablecoins accounted for only about 3% of total transactions on the blockchain. Today, that number has exceeded 50%. This did not happen by chance. Stablecoins have gradually become the 'financial backbone' of cryptocurrency thanks to the practical applications they provide.
Take cross-border payments, for example. If you've ever sent international money, you would notice that the current system is both slow and expensive. Stablecoins change this. Sending money from Vietnam to the US? A few seconds and almost free. Even in emerging countries, where access to traditional USD is often limited, stablecoins have become an alternative way to store value and make payments.
And that's just the tip of the iceberg. According to a study by Juniper Research, cross-border B2B payments – a $40 trillion market – are becoming a clear target for stablecoins. If stablecoins can capture just 1% of this market, we are already seeing billion-dollar opportunities.
Why Stablecoins Win?
Think about the financial systems we are using. They were not designed for today’s world – where everything moves at the speed of the internet. Banks close on weekends. Transfers take 1-3 days. And transaction fees are expensive. Stablecoins do not just replace the old system; they improve it on three major fronts:
Better: 24/7 trading, no borders, easily accessible from anywhere in the world.
Faster: Processing time is almost instant, instead of waiting one or two days.
Cheaper: Average transaction fees are low on blockchains like Solana or Ethereum L2. Meanwhile, traditional systems often charge 2-3% plus fixed fees.
When a technology is not only better but also cheaper and faster, it often wins. Stablecoins are doing just that with finance.
Where Are Stablecoins Going?
An interesting thing about stablecoins is how they are evolving into distinct layers of applications – each layer bringing new business opportunities. Let's take a look at some of the main layers:
Merchant Layer: This is where retail and B2B transactions take place. Imagine a platform like Shopify integrating stablecoins, allowing businesses to save millions in payment fees. This not only increases profit margins but also opens up new financial services.
Orchestration of Stablecoins: Large enterprises with global customers can leverage stablecoins to handle cross-border payments or convert between stablecoins and fiat currencies at low costs.
FX and Liquidity: One of the biggest barriers in forex trading is hidden fees. Stablecoins can reduce those costs to nearly zero while improving transaction processing speed.
Issuing Stablecoins: Have you seen Paypal with its stablecoin PYUSD? They are not just issuing stablecoins for transactions; they are positioning themselves as a new generation digital bank.
Potential Applications in the Future
Stablecoins are not limited to what we see today. Here are some bold ideas being explored:
Stablecoin Neobank: A digital bank based on stablecoins, where you can deposit, make payments, and even borrow without stepping into a bank.
Onchain FX: Expanding stablecoins from USD to other currencies, like Euro or Japanese Yen, to build a decentralized forex market.
Payments on Telegram: Imagine sending stablecoins through a Telegram message. This is not just the future; projects have begun experimenting with this idea.
Global Venmo: Unlimited geographical P2P money transfers. What Venmo does for the US, stablecoins can do for the whole world.
A Decade of Stablecoins
Just as the internet took time to find its real applications, current stablecoins are still in a 'mining' phase. But all signs point to this being a revolution.
Visa, Stripe, and BlackRock have seen the potential. They are betting on stablecoins as a foundation for the next generation of finance. But the opportunity is not just for the giants. Smart startups are building digital banks, trading platforms, and P2P applications based on stablecoins.
Conclusion: The Future of Finance is Being Built Right Now
Stablecoins are not just a financial tool; they are a big idea – a new way for us to interact with money. This not only opens up profit-making opportunities but also allows founders and investors to create a lasting impact.
Try to look forward 10 years. You can envision a world where sending money, making payments, and borrowing happens seamlessly, instantly, and almost for free. Stablecoins not only help us dream of that world – they are building it.
Finally, stablecoins are not just a stable financial tool. They are a symbol of innovation, the center of a revolution, and the first real-world application of blockchain technology.
