a16z Partner: Stablecoins are迎来 their WhatsApp moment

Written by: Chris Dixon, General Partner at a16z

Translated by: Deep潮 TechFlow

Deep潮 Guide: The internet has enabled the globalization of information, and cryptocurrencies are having a similar impact on money. Chris Dixon, head of a16z Crypto, points out in this article that stablecoins are experiencing their “WhatsApp moment”—just as WhatsApp reduced the cost of cross-border messaging to zero, stablecoins are making cross-border payments nearly free and instant. In 2024, stablecoin settlement volume has approached that of Visa, and their status as one of the top 20 holders of U.S. debt is subtly reinforcing the dollar’s dominant position amid a multipolar global landscape. This is not just a technological upgrade in payments but a profound reorganization of the global financial system.

The full text is as follows:

The internet has enabled the globalization of information. Cryptocurrencies are now having a similar effect on money. While recent headlines may still focus on Bitcoin’s price, a deeper and more lasting transformation is quietly underway in digital payments. This year, stablecoins—cryptocurrencies pegged to assets like the US dollar—are officially becoming mainstream for online payments and international settlements.

We can call this the “WhatsApp moment” for money. Just as messaging apps like WhatsApp reduced the cost of international SMS from 30 cents per message to zero, stablecoins are playing a similar role in financial transactions. Data proves this: after removing bots and non-authentic activity, last year’s stablecoin transaction volume exceeded $12 trillion—approaching Visa’s $17 trillion in transactions last year, but at a fraction of the cost.

In this process, stablecoins have brought the original openness and interoperability vision of the internet into finance. Given that blockchain technology endows stablecoins with programmable features, money is essentially becoming software.

Although most stablecoin transactions currently originate from crypto-native and global business activities rather than everyday consumer use, this is changing. With new improvements aimed at reducing user friction—including integration with more traditional financial institutions—mass adoption is on the horizon.

In the future, people around the world conducting transactions supported by stablecoins will hardly notice they are using this technology. Most will think they are simply using dollars. And that’s true—because for end users, the distinction between stablecoins and dollars is becoming abstract. Since each token is backed by one dollar or an equivalent asset, the name doesn’t matter. What matters is that this product is more reliable than any payment technology before it, with near-instant settlement, virtually free, and far ahead of existing systems.

Stablecoins also demonstrate the potential unlocked when policy and technology move in sync. Last year’s Genius Act established clear U.S. regulations for stablecoins. More importantly, Congress is now considering the Clarity Act, which would regulate the broader ecosystem of blockchain networks and digital assets supporting stablecoins. The Clarity Act will help determine whether these networks will expand into part of the global financial infrastructure or stagnate. When you provide a level playing field and space for innovation, markets can work their magic. This is how the web has overtaken legacy companies, how the U.S. has led the internet, and how stablecoins will surpass today’s payment structures.

Companies have already recognized the advantages of stablecoins. Some of the world’s largest tech firms, banks, and retailers are developing plans to use stablecoins, or like Fidelity, have already issued their own. Payment giant Stripe has acquired several crypto companies over the past year and now supports stablecoins at checkout, instantly reducing processing fees from about 3% to 1.5%, with significant room for further decrease. SpaceX uses stablecoins to transfer funds from Argentina and Nigeria, where local banking systems are fragile or capital controls are strict. Some companies are using stablecoins to pay employees worldwide more quickly. Ultimately, the internet could evolve into a thriving open marketplace of machine-to-machine commerce, with AI agents conducting real-time transactions and contract settlements on behalf of users.

The widespread adoption of stablecoins also produces an often underestimated secondary effect: these tokens reinforce the dollar’s dominance in a multipolar world, creating a powerful new demand source for U.S. debt. Leading stablecoin issuers like Circle and Tether currently hold nearly $140 billion in short-term U.S. government debt, placing them among the top 20 holders of U.S. Treasuries today. If stablecoin adoption continues at its current growth rate, they could leap into the top 10 by next year. (Citi Research even envisions a scenario where, by 2030, stablecoin holdings of U.S. debt could surpass those of foreign governments and commercial banks combined.)

This is not just about payments. It’s a global financial reorganization. The internet gave us borderless communication; stablecoins give us borderless value transfer. With clear rules and market structures, they can become the channels and pillars of a new financial system.