“Stablecoins are the best way that we have to export the U.S. dollar.” – 02:37
Remy Blaire engages in a compelling discussion with Kevin Lehtiniitty, the CEO of Borderless.xyz, as they explore the evolving landscape of stablecoins during the Money20/20 conference in Las Vegas. As the conference comes to a close, Remy and Kevin delve into the significant developments surrounding stablecoins and their implications for the global payments market.
Remy begins by asking Kevin to define what a stablecoin is. Kevin explains that a stablecoin is a blockchain-based asset that is fully backed one-to-one by a fiat currency, such as the US dollar. He uses USDC, Circle’s stablecoin, as an example, illustrating how it maintains its intrinsic value despite market volatility. This foundational understanding sets the stage for a deeper exploration of stablecoins’ role in the financial ecosystem.
As they reflect on the conference, Kevin highlights the increasing interest from institutional and enterprise players in stablecoins, marking a shift from niche discussions among blockchain enthusiasts to mainstream conversations involving well-known brands like FIS, WorldPay, and Wise. He emphasizes that this year’s conference feels like a turning point for stablecoins, as they finally gain the attention they deserve.
The conversation then shifts to the concept of “borderless” finance. Kevin discusses how stablecoins serve as a means to export the US dollar to emerging markets that experience currency instability and high inflation. He points out that in countries like Brazil, Argentina, and Nigeria, consumers are increasingly adopting stablecoins to preserve their purchasing power, showcasing the real-world utility of these digital assets.
Remy and Kevin also address the challenges posed by fragmentation in the stablecoin market. Kevin explains that, unlike traditional payment networks, which have established systems for interoperability, the stablecoin landscape lacks a universal exchange or index. This fragmentation leads to significant discrepancies in liquidity and pricing across different venues, complicating the global payments ecosystem.