(、ᐛ)ヘ_/ Nadim's Blog

Beyond Speculation: The Stablecoin

Stop for a moment. Take a few minutes to recognize how incredible it is that stablecoins exist. They don't get enough credit for that alone.

Appreciate the fact that US dollars and other currencies can be tokenized and then transacted at scale within an open, distributed, alternative financial system. Globally accessible and permissionless, with robust rails to the traditional financial system.

It is an achievement, not to be taken for granted. A fascinating outlier in the world of financial technology, an industry that has relentlessly nudged its users to relinquish control and freedom over their assets and behaviours in exchange for ease of use.

They're certainly very easy to criticise, with the incumbents being flawed in countless ways. You don't need me laying that out for you.

Experimentation might have stalled for some time (for very good reason), but there is now a robust, diverse pipeline of new stablecoins coming to market, from increasingly credible actors.

A certain critical mass and wider buy-in has been reached. There is no killing the stablecoin. And as long as some rails exist between cash, traditional finance/banking and onchain stablecoins, crypto will have a reason to exist. A compelling one.

Zoom out.

There is so much to be written about the usefulness of stablecoins and their important role within the wider landscape of increasingly digital payments. A non-custodial revolution of sorts: it led us somewhere. None of it is perfect. But it is so, so much better than the alternative. And yes, I've written about this at length, specifically the case for non-USD stablecoins and onchain FX and the use of blockchains for digital payments.

This is part 1 of a short blog series exploring use-cases for crypto/web3 beyond speculation. Start with the opening blog Underneath the Speculation. Tune in to the series by subscribing below: