Andreessen Horowitz’s cryptocurrency arm says the word “stablecoin” has become a relic of cryptocurrencies’ volatile early years. The company argued that the brand would not be viable as digital dollars stabilized in mainstream finance.
The company said that stability is no longer the hallmark of this category. The technology has outlived its original name. It now lies at the center of the global payment system.
Stability is the word, not the feature
In a mail Published this week, a16z compared “stablecoins” to “horsepower.” Useful when explaining a new device through a device that is familiar, then old, then stuck.
The original problem was simple. Wild Crypto volatility It kept the technology unusable for everyday saving, lending or payments. Stability solved that. It is now a prerequisite, not a product.
Stablecoins today Transfer value across borders for settlement in secondsEmbedded in consumer applications and run on programmable rails. Recent monthly transfer volumes It outperformed the major payment network in America.
The supply of stablecoins has risen to over $300 billion. Companies treat dollar-pegged tokens as a means of payments rather than a tool for trading cryptocurrencies.
“Stability is now at stake. It is a prerequisite, not the point.” He reads Excerpted in this post.
What replaces “stablecoin”
a16z expects the category to be quietly renamed. The company indicated:Digital dollars“Digital Euro” and “On-Chain Assets” as alternatives.
Each label more accurately describes how users interact with the asset, she said.
The most profound change, she said, is that money now behaves like software, and is programmable Integrated directly into consumer applications.
The argument falls flat on it The sector is climbing to new highs. Companies including Fire blocksCircle and Western Union are already building infrastructure around the asset class.
a16z said that the name may be less important than what comes after it. Whether “digital dollar” replaces the term or simply switches to regular finance, the company expects users to continue to transact either way.
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