The most interesting thing in stablecoin cross border payments is whether stablecoins are actually the best tool
Instant payments is a last mile liquidity problem
And BTC has highly liquid pairs with virtually every currency
It's a battle of liquidity between BTC, USDT and an increasingly fragmented tokenized currency landscape
It's not clear who wins:
- BTC is neutral and prevalent, but you need to use lightning or a L2 for speed (tech friction) and it must be the sandwich model
- USD stables are already in use, can tap into USD fiat liquidity (with offramp) and only require one side (no sandwich) if the sender/recipient uses USD stables for treasury
- Commercial banks are working to innovate on correspondent banking with tokenized deposits but this will take years to reach consensus
In my view, they'll co-exist (they serve slightly different use cases) but for fiat to fiat I can see BTC routed payments becoming dominant as the world coalesces around a single pair, but for this to happen the perceived friction to adopt it needs to come way down
Instant payments is a last mile liquidity problem
And BTC has highly liquid pairs with virtually every currency
It's a battle of liquidity between BTC, USDT and an increasingly fragmented tokenized currency landscape
It's not clear who wins:
- BTC is neutral and prevalent, but you need to use lightning or a L2 for speed (tech friction) and it must be the sandwich model
- USD stables are already in use, can tap into USD fiat liquidity (with offramp) and only require one side (no sandwich) if the sender/recipient uses USD stables for treasury
- Commercial banks are working to innovate on correspondent banking with tokenized deposits but this will take years to reach consensus
In my view, they'll co-exist (they serve slightly different use cases) but for fiat to fiat I can see BTC routed payments becoming dominant as the world coalesces around a single pair, but for this to happen the perceived friction to adopt it needs to come way down
https://x.com/chuk_xyz/status/1980750404460900679
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