A16Z On Stablecoins

Source

https://xcancel.com/iang_fc/status/1847728314087313735#m

a16z on stablecoins: Stablecoins.. the realization that stablecoins can fortify the U.S. dollar’s position abroad even as the dollar’s global reserve currency status slips. Today, more than 99% of stablecoins are denominated in USD, which dwarfs the next largest denomination: 0.20% in Euro. In addition to projecting the power of the American dollar around the world, stablecoins are potentially strengthening the country’s financial footing at home. Despite being only a decade old, stablecoins have risen to become a top 20 holder of U.S. debt, putting them ahead of countries like Germany.

a16zcrypto.com/posts/article… While some countries are exploring CBDCs, the stablecoin opportunity sitting right in front of the U.S. is ripe for the taking. Between these discussions and the number of prominent political figures now weighing in about crypto generally, we expect more countries will start to flesh out their crypto policies and strategies in earnest.

Stablecoins make it easy to transfer value. They amounted to $8.5 trillion in transaction volume across 1.1 billion transactions in the second quarter of 2024 ended June 30. Stablecoin transaction volumes more than doubled Visa’s $3.9 trillion in transactions over the same period. That stablecoins have entered the same conversation as such well-known and entrenched payment services as Visa, PayPal, ACH, and Fedwire is a remarkable testament to their utility.