Money, mortgages, savings, and transactions: These things matter to all of us. Yet, most of us never stop to ask: Is the system underpinning these things even sound? Given the clear instability, they probably should.
For the past 50 years, millions have worked and saved, only to watch their wealth evaporate. Inflation quietly siphons away their purchasing power. Systemic banking risks threaten their savings. And yet, the conversation remains stagnant.
Two uncomfortable truths should be obvious by now.
First, modern money is broken. Stablecoins won’t fix it alone, but collateralized debt and asset-referenced tokens offer partial solutions. Second, just as the past two decades democratized information, the next two will democratize financial value flow. The same shift that shattered media monopolies and gatekept knowledge is now coming for the financial system.
And the incumbents know it.
Visa is settling over $1B in USDC transactions. JPMorgan’s JPM Coin has processed $300B+ in interbank transactions. These are not side experiments. The foundations of financial infrastructure are shifting in real time.
This battle isn’t just about adoption. It’s about resistance.
In simple game theoretical terms, the establishment has two choices: adapt or die.
Some are hedging their bets. Goldman Sachs and Morgan Stanley have carved out digital asset divisions. Mastercard and Visa are embedding stablecoins into settlement rails. Standard Chartered’s SC Ventures launched Zodia Custody to prepare for a post-SWIFT financial world.
Others are fighting back.
The American Bankers Association, investment banks, and regulatory bodies like FinCEN are scrambling to contain the shift. The Biden Administration tried to choke off crypto adoption through Operation Choke Point 2.0. Ironically enough, this has meant the world’s financial hegemon is falling behind in payments and banking efficiency, even as it dominates derivatives and structured products.
Meanwhile, the rest of the world is moving ahead.
Singapore has built a clear regulatory framework for digital payment tokens
Hong Kong has implemented a VASP licensing regime
The UAE has built a comprehensive digital asset framework through VARA
(And even) The EU has introduced MiCA regulations for stablecoins
The usual excuse for regulatory overreach? Money laundering concerns.
The reality? Blockchain is already more transparent than traditional banking.
Chainalysis data from 2024 shows illicit crypto transactions make up just 0.15% of total volume. Traditional finance? 2-5% according to the UN.
And what about compliance? A joke.
Traditional banks spend $150-500 per suspicious activity report. Blockchains do it for $20–50. Real-time monitoring has cut false positives by 60%.
Traditional KYC costs $100-500 per customer. Blockchain-based KYC? $10-50, with cryptographic verification improving accuracy.
A dual-track system is emerging.
Institutions operate within regulatory frameworks, using stablecoins like USDC and PYUSD. Meanwhile, retail users, especially in underbanked regions, access both regulated and unregulated options:
Stablecoin transaction volume has exceeded $10T annually in 2024.
70% flows through regulated venues
30% serves the unbanked, providing access to financial services where traditional banks fail
This isn’t just a financial evolution. It’s a geopolitical weapon. Stablecoins aren’t eroding the US dollar’s hegemony. They’re reinforcing it. By embedding the dollar deeper into digital finance, stablecoins are creating a parallel monetary system that strengthens demand for USD worldwide.
Reg S exemptions are now allowing non-U.S. investors to access T-bill yields and dollar-denominated assets. The implications will be momentous.
We are at the beginning of a 20-year realignment in global finance. Stablecoins aren’t a niche experiment. They are the new monetary infrastructure. Payments will be the next battleground and legacy financial intermediaries will need to adapt or become extinct. The heyday of financial gatekeeping is over and a new era of democratized value flow has emerged.
Money, mortgages, savings, and transactions: These things matter to all of us. Yet, most of us never stop to ask: Is the system underpinning these things even sound? Given the clear instability, they probably should.
For the past 50 years, millions have worked and saved, only to watch their wealth evaporate. Inflation quietly siphons away their purchasing power. Systemic banking risks threaten their savings. And yet, the conversation remains stagnant.
Two uncomfortable truths should be obvious by now.
First, modern money is broken. Stablecoins won’t fix it alone, but collateralized debt and asset-referenced tokens offer partial solutions. Second, just as the past two decades democratized information, the next two will democratize financial value flow. The same shift that shattered media monopolies and gatekept knowledge is now coming for the financial system.
And the incumbents know it.
Visa is settling over $1B in USDC transactions. JPMorgan’s JPM Coin has processed $300B+ in interbank transactions. These are not side experiments. The foundations of financial infrastructure are shifting in real time.
This battle isn’t just about adoption. It’s about resistance.
In simple game theoretical terms, the establishment has two choices: adapt or die.
Some are hedging their bets. Goldman Sachs and Morgan Stanley have carved out digital asset divisions. Mastercard and Visa are embedding stablecoins into settlement rails. Standard Chartered’s SC Ventures launched Zodia Custody to prepare for a post-SWIFT financial world.
Others are fighting back.
The American Bankers Association, investment banks, and regulatory bodies like FinCEN are scrambling to contain the shift. The Biden Administration tried to choke off crypto adoption through Operation Choke Point 2.0. Ironically enough, this has meant the world’s financial hegemon is falling behind in payments and banking efficiency, even as it dominates derivatives and structured products.
Meanwhile, the rest of the world is moving ahead.
Singapore has built a clear regulatory framework for digital payment tokens
Hong Kong has implemented a VASP licensing regime
The UAE has built a comprehensive digital asset framework through VARA
(And even) The EU has introduced MiCA regulations for stablecoins
The usual excuse for regulatory overreach? Money laundering concerns.
The reality? Blockchain is already more transparent than traditional banking.
Chainalysis data from 2024 shows illicit crypto transactions make up just 0.15% of total volume. Traditional finance? 2-5% according to the UN.
And what about compliance? A joke.
Traditional banks spend $150-500 per suspicious activity report. Blockchains do it for $20–50. Real-time monitoring has cut false positives by 60%.
Traditional KYC costs $100-500 per customer. Blockchain-based KYC? $10-50, with cryptographic verification improving accuracy.
A dual-track system is emerging.
Institutions operate within regulatory frameworks, using stablecoins like USDC and PYUSD. Meanwhile, retail users, especially in underbanked regions, access both regulated and unregulated options:
Stablecoin transaction volume has exceeded $10T annually in 2024.
70% flows through regulated venues
30% serves the unbanked, providing access to financial services where traditional banks fail
This isn’t just a financial evolution. It’s a geopolitical weapon. Stablecoins aren’t eroding the US dollar’s hegemony. They’re reinforcing it. By embedding the dollar deeper into digital finance, stablecoins are creating a parallel monetary system that strengthens demand for USD worldwide.
Reg S exemptions are now allowing non-U.S. investors to access T-bill yields and dollar-denominated assets. The implications will be momentous.
We are at the beginning of a 20-year realignment in global finance. Stablecoins aren’t a niche experiment. They are the new monetary infrastructure. Payments will be the next battleground and legacy financial intermediaries will need to adapt or become extinct. The heyday of financial gatekeeping is over and a new era of democratized value flow has emerged.
