Thread by @awrigh01

Stablecoins just crossed $200B. In 5 years. Everyone's watching the number. Few are thinking about what the number means.

For 50 years, "dollar hegemony" meant two things welded together: the dollar (currency) + American banks (distribution). Stablecoins split them apart. The currency wins. The monopoly dies.

This is the most important geopolitical shift in money since Bretton Woods.

Here's what just became possible: 8 billion humans can custody dollars. Without permission. Without a bank account. Without touching the US banking system. This is not an iteration. This is a phase transition.

Second order effect #1: Capital controls stop working. You can't trap what you can't custody. Can't sanction a seed phrase. Can't devalue someone's savings if they hold their own keys. Every authoritarian regime just got a terminal diagnosis.

Second order effect #2: Remittances flip from $150B/year extraction to near-zero cost. That's $150B staying in emerging economies instead of enriching Western Union. Those economies compound differently now.

Second order effect #3: Central banks have to compete for the first time in history. Bad monetary policy? Citizens exit in 30 seconds. Inflation just became a customer retention problem. The discipline this creates changes everything.

The pattern is clear. Open protocols beat closed systems. Email killed postal monopolies. TCP/IP killed telco cartels. HTTP killed CompuServe. Now: stablecoins kill banking rails. Same movie, different industry.

This is why the traditional system is panicking. Not because crypto is big. Because OPEN is winning again. They can see the end of the movie.

The correspondent banking system? Dead. That baroque maze of 47 intermediaries each taking fees? Pure artificial complexity for rent extraction. Software eats complexity. Always.

T+2 settlement? Dead. "We need 2 days to move numbers in a database" was always a scam for float and fees. Instant settlement proves it. Every business model built on settlement delay just got exposed.

Notice what's happening: Stripe integrates USDC. PayPal launches PYUSD. Visa does billions in volume. BlackRock launches BUIDL. When the skeptics become builders, the debate is over. We're in deployment now.

But here's the deeper thing everyone's missing: This isn't about payments. It's about EXIT.

Exit from bad currencies. Exit from financial surveillance. Exit from rent-seeking middlemen. Exit from permission. Exit is the most powerful political technology ever invented. We just made it frictionless and global.

You can't un-invent exit. Once people know they can custody their own value and move it permissionlessly, you can't put that genie back. You can't ban math. You can't regulate away open protocols. Physics > politics.

The new system runs on code and cryptography. The old system runs on trust and force. One of these scales to 8 billion people. One doesn't. This isn't a close call.

And we haven't even started on programmability yet. Money that enforces its own rules. Escrow without agents. Payroll without processors. Every rent-seeking intermediary becomes optional.

Here's the final second order effect: When money becomes permissionless, everything built on money becomes permissionless. Commerce. Credit. Coordination. Capital formation. You can't close the upper layers when the base layer is open.

We're not watching fintech innovation. We're watching the separation of money from state monopoly. Not completely. Not immediately. But directionally, inevitably.

When individuals can custody and transfer value globally without permission, the nature of sovereignty itself changes. Not governments vs crypto. But individuals vs institutions. The power gradient just shifted.

This is 1995 internet energy. The protocols are live. The skeptics are coming around. The old system is coming on board. Why? Because you can't compete with open. Never could.

Still so early it's painful.