I’ll always remember the disbelief in my aunt Maria’s voice. Every month Moctezuma sends money home to her family in Mexico. Lo and behold, Western Union gulps down more than half of that hard fought dollars in greedy fees. It’s highway robbery, plain and simple. It’s a story told millions of times across the globe. What if there were a better way? Imagine if sending money around the world was as affordable and convenient as sending a short text message. That’s where stablecoins come in.

Recently, I attended Money20/20 Europe, and one thing was crystal clear: the digital finance revolution is no longer a pipe dream. Well, it’s here and in many ways, stablecoins are leading the charge. This isn't some far-off tech fantasy. It’s not about numbers and charts, it’s about real people, like my aunt Maria, finally getting a fair shake.

Your Wallet, Your Rules, Finally?

Let’s face it, the financial world was never built with the average person in mind. Banks seek to extract extreme rents, international transfers take on average five days, and millions are completely cut off. Stablecoins are supposed to be stable – it’s in the name! They are most often backed by fiat currencies like the US dollar or Euro. This means you can send and receive money instantly, 24/7, often with much lower fees than current systems. Consider it a digital version of physical dollars in your pocket, available for use whenever you want.

This is more than just convenience. It's about financial inclusion. This means giving every person—particularly those in historically marginalized neighborhoods—the tools they need to take part in the 21st Century economy. And it’s not just about complementing the new economy, it’s about shaking the foundations of a financial system that values profits more than people.

Remittances Without the Rip-Off

Remember my aunt Maria? In this sense, stablecoins could provide a more immediate, straightforward solution to the remittance conundrum. Rather than enriching the banks and charities that often act as intermediaries, she could send money directly to her relatives through a stablecoin. The monthly fees would amount to less than one seventh of what she pays currently, and the transfer would be almost immediate.

Stripe, for example, is betting big on the future. Their recent move to acquire Bridge and their increasing interest in having an infrastructure for stablecoins is indicative. They know that stablecoins have the potential to open up millions of dollars in new efficiencies for enterprises by improving cross-border payments.

It's not just about remittances. Now picture a world where paying your bills, shopping online, and investing in assets is so easy to do with stablecoins that it is the preferred method. No more days waiting for checks to clear, no more hours managing cumbersome wire transfers. Just simple, seamless transactions.

Banks, Wake Up and Smell the Coffee!

The rise of stablecoins isn't just a threat to traditional financial institutions. It's a challenge. Banks need to adapt, and fast. As blockchain-based payment rails and stablecoins become increasingly viable alternatives to traditional correspondent banking, banks that don't develop a stablecoin strategy risk being left behind.

Europe is paving the way in this area. The EU’s MiCA framework is offering that regulatory clarity that the space desperately needs, emboldening institutions to take their first steps out of the experimental phase and into implementation. We’re now even starting to see EUR stablecoins come out that are fully tuned to MiCA regulations. The UK is just as proactively looking at their potential use as stablecoins and treating them as an investment vehicle.

To be clear, this regulatory momentum in Europe is a wonderful thing. This is an exciting sign that governments are starting to show they’re serious about digital assets. They have started to develop regulatory frameworks that promote innovation and protect consumers.

Beyond the Hype, Real Utility

Look, I get it. We know that the crypto world can feel intimidating and overwhelming. Stablecoins are different. They’re not about making a quick fortune or hunting down the next big meme coin. They’re about providing a practical, accessible and affordable alternative to the exploitative traditional financial system.

Volatility and regulatory uncertainty are valid concerns. I think the risks pale in comparison to the benefits, particularly for those who are currently excluded from the traditional financial system.

  • Faster, Cheaper Payments: Send money instantly and globally with lower fees.
  • Financial Inclusion: Access financial services regardless of your location or credit score.
  • Greater Control: Manage your money directly, without relying on intermediaries.
  • New Investment Opportunities: Participate in decentralized finance (DeFi) and earn yield on your stablecoin holdings.
  • Simplified International Transactions: Pay bills, shop online, and send remittances with ease.

The Future is Now, Let's Build It

It's time to demand better. It's time to embrace innovation. There’s no better moment to tear those down and build a more inclusive and equitable financial system for everyone. Understand stablecoins, lobby for responsible regulation, and fund the projects that are building to democratize finance.

The future of money is indeed stable. Let’s make sure the right people have a seat at the table.

The future of money is here, and it's stable. Let's make sure everyone has a seat at the table.