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Are Stablecoins Dead on Arrival?

The debate is less about absolute correctness and more about contextual relevance; stablecoins might offer little in a New York to London payment but could be a lifeline in Lagos or Buenos Aires.

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Chief Maverick on 8 Jun 2025
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Are Stablecoins Dead on Arrival?

Global money movement is evolving, not in a winner-takes-all battle between stablecoins and banks, but through a hybrid model that blends token rails with traditional finance.

Below, I unpack the core debates, draw on leading voices (from Jack Zhang to a16z and Fintech Brainfood), and share Payd's vision for building towards this future. For the full, data-driven deep dive, see our First-Principles Analysis.

1. G10 Blinders View

Airwallex CEO Jack Zhang kicked off a firestorm in this thread:

“If you send USD/EUR and the receiver still needs EUR in a bank, stablecoins can't reduce fees, off-ramping is pricier than the interbank FX market. We move G10 money at <0.01% in real time. You can't beat free and real-time.”

Zhang admits stablecoins may help exotic corridors, but in prime G10 lanes they look redundant. This "G10 blinders" view highlights how incumbents see little unmet need once rates hit sub-basis-point FX and instant settlement.

2. The Counter-Narrative

Despite the skepticism, major players are building token rails alongside banks:

  • Stripe's $1.1 B acquisition of Bridge bet on stablecoins as "room-temperature superconductors for financial services" (Patrick Collison).
  • Stripe now offers stablecoin accounts in 100+ countries, via USDB and USDC Ledger Insights.
  • Visa's USDC pilot on Solana for near-instant merchant settlement Ledger Insights.
  • PayPal's PYUSD (2023) launched as a fully regulated US dollar token PayPal.

Venture capitalists like a16z call stablecoins the "WhatsApp moment for money", envisioning token rails as global, instant, programmable rails a16z Stablecoin Guide.

3. Where Stablecoins Win Today

a. Emerging-Market Remittances

  • High costs: Global average 6.2%, Sub-Saharan Africa 7.9% World Bank.
  • On-chain rails: Settlement in seconds for pennies.
  • Real adoption: LATAM saw ~$415 B and Africa ~$125 B on-chain inflows (July '23-'24), ≈70% commercial volume Chainalysis LATAM SSA.

b. B2B & Trade Finance

  • Token corridors: Chinese suppliers accept USDT; USDT on Tron dominates for cost-sensitive flows.
  • On-chain FX swaps: Growing stablecoin usecase especially as part of the infra layer for remittance platforms Fintech Brainfood.

c. Freelancers & Gig Workers

  • Global workforce: 93% of freelancers in Brazil, Argentina & UAE want crypto payouts.
  • Use case: Designer in Nairobi invoices in USDC and hedges KES inflation.
  • Platform support: Deel, Remote and Payd offer stablecoin payroll APIs.

4. Core Advantages & Remaining Frictions

Capability Strengths Frictions
Cost & Speed Settlement in seconds; network fees <$10 Off-ramp FX spreads; withdrawal commissions
24/7 Availability No cut-off times, weekends or holidays Wallet UX; key management
Programmability Escrow, streaming payroll, revenue splits AML/KYC at rails; legal clarity
Accessibility Anyone with internet + wallet can receive USD On-ramp/off-ramp partnerships; local liquidity

Optimizing the "fiat - stablecoin - fiat sandwich": deep local liquidity, seamless rails, intuitive UX is the key task ahead.

5. The Hybrid Blueprint: Orchestrate the Best Rail

  1. Dynamic routing: Select bank wires for G10 high-value lanes; token rails for remittances, frontier B2B, micropayments.
  2. Invisible rails: Embed stablecoins within banking/fintech apps, users click "Send," the backend picks the optimal path.
  3. Programmable overlays: Use smart-contract flows for escrowed trade, subscription streams, minute-by-minute payouts.

Imagine paying a Filipino freelancer on Sunday night: your app uses USDC on Solana, swaps into PHP stablecoin, and credits her wallet by Monday morning, no crypto jargon, just instant funds.

6. Payd's Mission: Orchestrating Global Cash Flow

Building Payd, I wake up obsessed with bridging these worlds:

  • Integrate stablecoin rails where traditional rails stall ie remittances, exotic-FX B2B, gig payouts.
  • Build compliant on/off ramps via regulated partners to ensure smooth fiat conversions.
  • Expose programmable APIs so builders can embed payment logic without blockchain expertise.

By combining token rails' speed, cost-efficiency, and programmability with banks' compliance and fiat infrastructure, Payd empowers dreamers, innovators, and outliers to move money instantly and affordably, unlocking the next wave of global entrepreneurship.

Dive into the full Stablecoins: First Principles Analysis for a more detailed, first-principles reasoning on stablecoins and their place in global payments.

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