Stablecoins are transforming international money transfers just as WhatsApp revolutionized global communication. A16z highlights their ability to facilitate free and instant cross-border payments without traditional intermediaries, bringing a level of efficiency not seen before in the financial world. Blockchain technology is akin to the internet’s disruptive effect on communication and money transactions. Think cryptocurrencies, stablecoins, DeFi, NFTs, and the Metaverse – all branches stemming from the same seed of blockchain innovation. The ultimate goal of cryptocurrency development is to eliminate intermediaries and streamline global payments. Stablecoins are achieving this faster and more efficiently than their counterparts. 16z’s recent blog post provides a detailed analysis of how stablecoins have already begun reshaping international transactions, with costs being significantly lower compared to traditional methods. For example, sending $200 from the US to Colombia using traditional payment methods results in $12.13 in fees while stablecoin transfers cost only $0.01. This is because traditional payments rely on multiple intermediaries who incur transaction costs, which ultimately adds up for consumers and businesses. Stablecoins bypass this cumbersome system, streamlining B2B payments as well, reducing delays and saving significant amounts. As the a16z blog post notes, SpaceX, for example, has adopted stablecoins for their internal business transactions, resulting in increased speed and reduced costs. Stablecoin usage, with its impressive market capitalization exceeding $200 billion and an annual transaction volume of $15.6 trillion (as per Ark Invest), highlights their growing dominance in traditional global payments. This is not the first time a16z has highlighted this trend, as they published another insightful report on stablecoin’s potential to disrupt traditional payments in December 2023. Manisha Ailneni is a skilled content writer specializing in blockchain, NFTs and fintech trends, with a passion for demystifying complex topics for the Web3 community.