After witnessing the numerous absurd arguments about stablecoins in the Financial Times and Wall Street Journal, I want to clarify one point: Instead of overly worrying about stablecoins (i.e., innovation) eroding their profits, banks and policymakers should calmly consider what truly benefits human well-being.
Stablecoins are far more than just another iteration of digital currency—they represent the next significant leap for the internet in financial democratization. Just as the internet fundamentally changed how information is accessed, stablecoins will reshape the accessibility of global financial services, enabling seamless, borderless value transfer. The accessibility of financial services should be viewed as a basic human right, just like education, clean water, and reliable information. Stablecoins have the potential to fulfill this promise, bringing billions of underserved populations into the global economic mainstream.
However, even for those indifferent to altruistic goals, the rise of stablecoins and financial inclusion should be closely observed from a purely pragmatic and capitalistic perspective. Today's traditional finance and crypto markets often resemble a zero-sum battlefield: speculative meme coin trading, selling high-risk corporate bonds to unsophisticated international investors, or burdening struggling economies like Argentina with unsustainable debt. These practices may bring short-term profits but inevitably limit long-term economic potential and stability.
Empowerment enables truly sustainable economic growth. Only by enhancing financial service accessibility, improving educational opportunities, and expanding economic choices can we unlock the potential of the global population and achieve genuine, sustainable economic expansion. The pioneering practice of Kenya's mobile payment platform M-Pesa is clear evidence: by empowering savings and entrepreneurship, it helped nearly 200,000 households escape extreme poverty, significantly improving the country's economic productivity. Similarly, in the United States, small businesses transitioning from cash transactions to digital payments typically see transaction volumes increase by 10%-15%, directly enhancing their income and growth potential.
The gig economy provides an apt analogy. Platforms like Uber and Airbnb significantly reduced prices and improved accessibility by expanding vehicle and accommodation supplies. Similarly, stablecoins effectively promote financial inclusion by expanding financial service supply, reducing costs, and eliminating participation barriers for consumers and businesses. We can also compare this to recent breakthroughs in artificial intelligence (AI), which greatly enhanced human productivity and creativity. Historically, such productivity leaps—like during the Industrial Revolution—significantly improved human well-being by making goods and services more accessible and affordable.
Moreover, the social benefits of financial inclusion are well-documented. Communities experiencing inclusive economic growth see tangible improvements in public safety and overall quality of life. Research shows that economic development projects—such as community revitalization and targeted employment programs—can significantly reduce crime rates and foster healthier community environments. In Philadelphia, initiatives aimed at economic revitalization directly contributed to a significant drop in violent crime rates, powerfully demonstrating how broad economic opportunities can shape safer, more resilient societies.
Stablecoins particularly benefit freelancers, digital nomads, and gig workers by reducing cross-border transaction costs and barriers. Surveys indicate strong demand for stablecoin payments among global freelancers, with nearly two-thirds preferring stablecoins over traditional local currencies. Freelancers and digital workers from emerging markets, previously limited by poor traditional financial infrastructure, can now seamlessly participate in the global labor market, enhancing productivity and economic prospects.
Financial inclusion is not just ethically compelling—it is a strategic economic imperative. Through its efficiency and inclusivity, stablecoins provide the necessary tools to unlock global human potential and economic vitality.
Original source:
https://x.com/gizmothegizzer/status/1927849497457009143
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