It might be difficult to recall how communications use to operate. There was a time when interaction was slow and, more important, costly.
Naturally, this is no longer the case. We are now in an era where communication is instant. We can connect to people throughout the world with seconds. Billions of people are potential contacts. This can be done through messenger applications, social media, or blog posts.
The Internet made information fast and free. No longer are people receiving the per minute charge for voice communication. We also have removed the 30 cent per text charge that was common a couple decades ago.
In hindsight, if we really look, we can see how much things have advanced with regards to communications.
Are we about to see the same thing with money? That is what we will dive into with this article.
Image generated by Ideogram
Whatever one's thoughts are regarding Mark Zuckerberg, we cannot deny the impact he had on the world.
He is a major reason why communications changed in the manner it did.
WhatsApp became one of the leading messenger applications in the world. It was not developed by Meta, being acquired in 2014. It was created by a couple of former Yahoo employees in 2009. Over the last decade, it saw growth that put it over 2 billion users.
What did this application do? It basically replaced the telephone company. The ability to engage in not only text but voice altered everything. There is the ability to leave messages for others. In some countries, payments can even be made inside chats.
This removed the friction from the equation. While Meta is an intermediary, it is the only one. With traditional communication services, multiple carriers are involved, especially when dealing on an international basis.
We also see the cost removed. WhatsApp is free to use. No charges are issued to the users.
Could stablecoins do the same thing for money?
The traditional system is full of financial intermediaries. It was established by a variety of entities that extract part of every transaction. Because of this, payments, especially cross border are expensive.
He points out that a $200 international remittance still costs an average of 6.62% in fees, which he calls a regressive tax on the world's poorest workers.
Most of us can identify with this in some capacity. Even if we are not dealing with international payments, the "vig" on payments and transactions of this nature is steep. In this era, what is the reason for it? The transactions are basically automated, removing humans from the process.
The answer is "because they can".
Without viable alternatives, people simply have to accept what is given to them. That was the case for decades with telecommunications. Even switching carriers means going from one extractor to another. The decision was based upon who was taking less (but still taking).
Stablecoins are offering something similar.
The fees to transact as miniscule compared to the existing system. What was once thought as a novel idea are now becoming a foundation in the global financial system.
Dixon says that stablecoins processed $15.6 trillion in value in 2024—equivalent to Visa's volume—demonstrating real-world adoption beyond theoretical promise.
"Unlike the old financial stack, which evolved in silos, stablecoins are global by default. They live on blockchains: open, programmable networks that anyone can build on," he said.
He adds that regulatory clarity could accelerate stablecoin adoption.
At the core of this discussion is the underlying infrastructure.
WhatsApps was successful because it was built on top of the Internet protocols, which are open to anyone. There were no gatekeepers with the "pipes".
This is not the case with traditional Telecos. They own the "roads" that communications travel upon. If you pick up the phone and call someone, you are on their wires (airspace).
The Internet was a different animal. There are many different layers of infrastructure, many controlled by companies, others open to use.
Here is where the parallel between stablecoins and communications enters. Many stablecoins are being built on open infrastructure. They are tied to blockchains, networks which allows anyone to run a node. These operators tend not to be associated with each other. It is what provides the decentralized feature.
We also have open source. Blockchains can be forked, creating a completely new network. No permission is required.
This means that any information transmitted, including financial, is available to the masses. Intermediaries no longer exist at the infrastructure layer. Stablecoin transaction can operate without friction, moving faster along with reduced fees.
Since we are dealing with the digital world, the key is network effects. Messenger applications took off as more users joined. An application with 3 people is not going to enjoy much success. Compare that with WhatsApp where about 20% of the world's population has the app, and we can see the difference.
Regulation is likely to make stablecoin acceptance explode. Companies are hesitant to get involved, especially in the US. Since the overwhelming majority of stablecoins are US dollar denominated, inclusion of this market is crucial.
