The post Stablecoins Bring a WhatsApp Moment to Global Money Transfers appeared on BitcoinEthereumNews.com.

Stablecoins facilitate near-instantaneous transactions with minimal fees.  Stablecoins  democratize financial services and promote greater economic inclusion globally. During his analysis, Chris Dixon from Andreessen Horowitz (a16z) uses WhatsApp as an example to explain stablecoins. Dixon points out stablecoins use the same disruptive model as WhatsApp, where they lower expenses through internet-based solutions for money transfer operations.  The mystery exists for him as to why moving funds requires an expensive process despite internet access now being free. The conventional system of cross-border transactions demands several financial institutions along with clearinghouses to complete operations and requires added delays that come with fees. Stablecoins streamline this process, enabling near-instantaneous transfers without the need for traditional financial intermediaries. Before modern times, international money transfer involved paying high fees and enduring long processing delays alongside multiple and complex intermediary financial institutions. The average 6.62% processing fees applied to $200 remittances result in $12.13 service charges during the several-day transmission period. The current inefficiencies notably harm those who depend on remittances as their primary income source located in developing countries. Businesses involved in foreign trade operations experience substantial challenges during their operations. The payment transfer process between Mexico and Vietnam stretches from three to seven days and requires multiple payment agents who collect fees worth between $14 and $150 per $1,000 transacted. The operational effectiveness and profitability face obstacles because of this prolongation together with the associated expenses, as Dixon clarified. He states that SpaceX, along with other companies, implements stablecoins to operate their corporate treasuries and, particularly, to retrieve funds from currency-volatile nations like Nigeria and Argentina. The payment system at ScaleAI and other firms utilizes stablecoins for hastening professional payment processes to their worldwide team members. Financial Organizations Adopt Stablecoins Stablecoins’ potential is also being recognized by financial institutions. In an effort to increase…

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Filed under: News - @ April 11, 2025 3:27 am