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The War Between Stablecoins and Banking May Not Actually Exist

The article argues that the perceived war between stablecoins and traditional banking is largely illusory, drawing a parallel to the "Javon's Paradox" where technological efficiency (like ATMs) expands, rather than shrinks, an industry. From the supply side, blockchain and stablecoins are dismantling fragmented global payment infrastructures, replacing them with a single, open ledger. This drastically reduces the cost and complexity of offering financial services, enabling companies like Sling Money to operate globally with a small team. Examples like M-Pesa in Kenya and UPI in India show that lowering transaction costs to near zero leads to a massive expansion in financial inclusion, serving previously unbanked populations. On the cost side, the piece highlights the immense compliance burden on banks, which spend hundreds of billions annually on tasks like auditing and reconciling opaque transactions across correspondent banks. Shared ledger technology directly solves this by providing a single source of truth, eliminating reconciliation layers. Projects like J.P. Morgan's Onyx and the Canton Network demonstrate how banks are using this technology to achieve near-instant settlement and free up trapped capital. The convergence of these forces—lower barriers to entry and reduced internal operational costs—points to a future where more financial services are available to more people at a lower cost, much like cloud computing democratized access to computing power. The conclusion is that stablecoins will not destroy the banking system but will instead become a foundational infrastructure upon which more products are built, ultimately expanding the entire market.

Odaily星球日报02/23 12:47

The War Between Stablecoins and Banking May Not Actually Exist

Odaily星球日报02/23 12:47

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