a16z Crypto Founder Discusses Stablecoins: The "WhatsApp Moment" in the Currency Sector Has Arrived

Author: Chris Dixon

Article translation: Block unicorn

Chris Dixon is a general partner at a16z, leading its crypto investment division.

The internet has globalized information, and cryptocurrencies are having a similar impact on money. While recent headlines may focus on Bitcoin’s price, a deeper and more lasting transformation is underway in digital payments. This year, stablecoins—cryptocurrencies pegged to assets like the US dollar—are gradually becoming the mainstream choice for online and international payments.

Let’s call it the “WhatsApp moment” for money. Just as messaging apps like WhatsApp reduced the cost of international SMS from around 30 cents per message to zero, stablecoins are doing the same in financial transactions. Data confirms this: last year, after excluding bots and other irrational trades, stablecoin trading volume exceeded $12 trillion—approaching Visa’s $17 trillion in transactions last year, but at a much lower cost.

In this process, stablecoins are bringing the original open and interoperable vision of the internet into finance. Given that blockchain technology allows stablecoins to be programmable, money is essentially becoming software.

Although most stablecoin transactions currently come from “crypto-native” and global commercial activities rather than everyday consumer use, this is changing. With more improvements—such as integration with traditional financial institutions to make transactions more convenient—the large-scale adoption of stablecoins is on the horizon.

People around the world using stablecoins for transactions often don’t realize they’re using stablecoins. Most think they’re simply using dollars. And that’s true, because the distinction between stablecoins and dollars has become highly abstract for end users. Since each token is backed by one dollar or an equivalent asset, the name itself doesn’t matter. What matters is that the product is more reliable than any previous payment technology, nearly free, with much faster settlement—almost instant.

Stablecoins also demonstrate the limitless possibilities when policy and technology align. Last year’s Genius Act established clear rules for stablecoins in the US. More importantly, Congress is currently considering the Clarity Act, which aims to regulate the broader blockchain networks and digital asset ecosystems supporting stablecoins. The Clarity Act will help determine whether these networks can scale and become part of the global financial infrastructure or remain stagnant. When a level playing field and space for innovation are provided for challengers, markets can unleash their magic. The internet itself has been shaped by this power—defeating traditional giants; the US has led the internet through this force; and stablecoins will similarly surpass today’s payment systems.

Companies are already recognizing the advantages of stablecoins. Some of the world’s largest tech firms, banks, and retailers are actively promoting stablecoin applications, or like Fidelity, have issued their own stablecoins. Payment giant Stripe has acquired multiple crypto companies over the past year and now supports stablecoin payments at checkout, instantly reducing processing fees from about 3% to 1.5%, with significant room for further reduction. SpaceX uses stablecoins to transfer funds out of countries with fragile banking systems or strict capital controls, such as Argentina and Nigeria. Some companies use stablecoins to pay their global employees more quickly. Ultimately, the internet may evolve into an open marketplace where machine-to-machine transactions flourish, with AI agents conducting trades and settlements on behalf of users in real time.

The widespread adoption of stablecoins will also generate a often underestimated second-order effect: these tokens reinforce the US dollar’s dominance in a multipolar world, creating strong new demand for US Treasuries. Leading stablecoin issuers like Circle and Tether currently hold nearly $140 billion in short-term US government bonds, making them among the top 20 holders of US debt today. If stablecoin adoption continues to grow at the current pace, by next year, their holdings could rank in the top 10. (Citi Research even predicts that by 2030, the amount of US debt held by stablecoins relative to foreign governments and commercial banks could surpass that of these entities.)

This is not just about payments but a reshaping of the global financial landscape. The internet enables borderless communication; stablecoins enable borderless value transfer. With clear rules and well-structured markets, they can serve as the pipelines and pillars of a new financial system.