- Top manager a16z Crypto reflected on the term “stablecoin”, believing that its meaning will change over time.
- In the future, this word will be used to describe digital currencies with a stable exchange rate, programmable, and unlimited in speed or by state borders.
Robert Hackett, Head of Special Projects at a16z Crypto wrote, that term stablecoin is gradually losing its relevance:
Aside from the Ford Bronco, cars no longer have anything in common with horses. Yet we still measure engine power in horsepower.
Stablecoins emerged during a period of high volatility in the cryptocurrency market in response to the need for price stability for various digital currencies. However, as technology developed, stability became a fundamental element rather than an innovation.
Now stablecoins are bigger similar on a patch for an old problem than on defining a new financial system.
At this point, a new term is needed—one denoting “digital money” or “programmable money”—that better captures the essence of the technology. Hackett believes we may return to phrases like “digital dollars,” “digital euros,” and other “blockchain assets.”
This technology will likely fade into the background and become simply a way for money to function. As stablecoins reach trillion-dollar market capitalization, underpin global payment flows, and take center stage in financial applications around the world, their name will matter less and less. What will matter is that money will behave like the rest of the internet for the first time: fast, programmable, and ubiquitous, the expert believes.
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