Multicurrency is the future of stablecoins, says Brian Shroder, the former CEO of Binance.US and founder of 1Money. Right now, the US dollar rules the stablecoin market, but Shroder believes that could change soon.
In a chat with Cointelegraph, he explained why he launched 1Money, a layer-1 network built for multicurrency stablecoin payments. “Our mission is to make stablecoin payments more accessible and practical for everyday use,” he said. He highlighted key uses like peer-to-peer transfers, online shopping, and international remittances. Shroder envisions a global network where stablecoins represent all major currencies.
The stablecoin market has ballooned to a whopping $222 billion. Tether’s USDt (USDT) and Circle’s USD Coin (USDC) lead the way, making up over 86% of the market, according to CoinGecko.
1Money isn't alone in this space. In November, Robinhood, Kraken, and Paxos teamed up to create the Global Dollar Network, which supports the USDG stablecoin on Ethereum. Ripple has also jumped in with its own stablecoin network aimed at global payments and collateralizing real-world assets.
What sets 1Money apart? It’s designed to support multiple stablecoins right from the start. Shroder believes stablecoins will evolve into a multicurrency market driven by the need for localized payments and remittances. “We see a lot of potential for stablecoins in other currencies to grow,” he said. This growth will be fueled by the demand for local commerce and easier currency conversions.
1Money plans to facilitate stablecoin-to-stablecoin swaps as a settlement layer. Initially, it will focus on fully reserved stablecoins, choosing them based on the issuer’s reputation, liquidity, compliance, and market demand.
Despite all the hype around blockchain, many systems beyond Bitcoin still struggle to fix the problems in traditional finance. Shroder pointed out that “many layer-1 and layer-2 protocols create new user pain points.” These include long wait times for transactions, high fees, and confusing requirements.
Some critics, like Jimmy Song, argue that blockchain may create more issues than it solves. Yet, stablecoins shine in their ability to facilitate cross-border payments and remittances. For example, Chainalysis found that sending a $200 remittance from Sub-Saharan Africa is about 60% cheaper with stablecoins compared to traditional methods.
If blockchain technology is going to go mainstream, it will likely be through stablecoins. A report from Quinlan & Associates and IDA revealed that cryptocurrencies, including stablecoins, currently represent just 0.2% of total global e-commerce transaction value.