Stablecoins transport payments yet not as you imagine

Ed Ludbrook - Future of Crypto
5 min readFeb 25, 2023

The dream of bitcoin was simply a totally new payments world. An electronic money system. The bitcoin system was the money, Bitcoin, and the blockchain wallet system.

Everything was out of the hands of those grubby bankers; central bankers, Bank of International Settlements and their friends who run clearing banks who act like they are untouchable [because they are untouchable]. These guys are the most hated people by all libertarian free-thinkers in the world and the apex of the sinister controlled global economy.

Bitcoin and then crypto was building a new economy away from these people.

They problem is that it has failed.

Bitcoin, or any other replacement, has not created a credible replacement to money or a payment system. Bitcoin has hundreds of millions of owners yet it is too expensive and too slow to be a payment system. No-one will use it to buy a coffee. Anyone who says it will is delusional.

Stablecoin revolution.

A stablecoin is a tokenized form of an underlying fiat currency. It allows you to send money outside of the normal banking system and payment rails.

When I send US dollars from my bank in New Zealand to a supplier’s bank in Hong Kong, the money is actually transfered between the US Dollar intermediatary banks of our banks. NZ$10,000 covered into US Dollars is sent via my bank, BNZ, through their US bank partner to the US bank partner of the bank of the supplier in Hong Kong. Its a relic of the old days, when actually physical money was sent. Its why, even in our world of instant digital transfers that it can take three days for money to be sent around the world.

A stablecoin means I can send US Dollars to someone anywhere in the world instantly. They just have to have a wallet that takes the stablecoin I sent. Money is finally properly digital.

The stablecoin world was created for the crypto-exchange market. The crypto was priced against US dollars and so to trade they created the stablecoin with the first one being Tether USDT.

Later on Circle, a US financial institution created USDC supported by some big crypto exchanges, because Tether was so dodgey as it was not backed by the US dollars it claimed. Then Binance creased BUSD with a New York crpyto trust company Paxos.

Today [25 Feb 2023], USDT is $70bn, USDC is $42bn, BUSD is $11bn. $123bn worth of fiat currency in a tokenized form.

Synthetic garbage.

They has tried to created ‘sythetic’ versions of tokenized money. Luna was the best disaster. This is simply tech speculator’s BS and would never create mass adoption as there is no trust in the algorithms or the people behind them. Remember this is money.

What people dont know….

  1. Its great business. You issue a stablecoin based on useage. You and your partners issue a successful stablecoin and people give you cash for tokens. you have to keep the cash on deposit in highly liquid assets in the same currency so in US dollars, lets say you have $10billion in US dollar government bonds. They currently yield a min of 4%. So every year you earn $400mil in interest!! And you dont pay it to anyone! Nice.
  2. Once embedded its hard to move. Tether USDT is a highly untrustworthy asset. It has never been backed as they claim. Only now, after endless threats of criminal prosecution are they backing it properly. YET because USDT was used everywhere as the defacto US stablecoin, $70bn in assets, it remains the king. And Bitfinex who is behind Tether, and its owners, earn a min of 4% on $70bn, ie $2.8bn, every year in profit. Amazing!

Stablecoins are about to create the biggest disruption in banking history.

If everyone in the UK had a wallet that took stablecoins of British pounds, lets call it, GBPT. Poundtoken.

And endless exchanges and payment systems from Paypal to banks, allowed for instant swap from GBP to GBPT at a tiny cost, say 0.1%.

Then payments would be instant and near costly.

No need for debit cards, just use a QR code phone wallet to phone wallet. No merchant services. No Visa, or Mastercard.

You can pay anyone anywhere in the world instantly.

Suddenly your bank account in your high street bank has no power over money as there is no clearing system with the bank of england. Clearnace in wallet to wallet, person to person.

I say that again. Major banks owns the economy because they own your bank account. You are more likely to change partners than change banks because they own your primary bank account.

For the first time in history, this is irrelevant. You dont need a bank to hold your money, pay your bills. Fintech companies will help you manage your money more efficiently. They will lend you money more cheaply. You will put your salary in your crypto wallet because it is simpler, cheaper, faster, easier.

So there will be a war over who controls your new crypto wallet.

Central Bankers corruption

Central bankers are already stepping into this fight where they will demand that those that provide wallets for payments to be licensed. They will ban foreign wallets. They will ban unhosted wallets.

Eventually, like China, they will only allow their friends in big banks and big payment systems to be able to host payments wallets. They will corrupt the economy so their friends win or get a major head start.

They will claim its to ‘protect the consumer’ where big bankers have famously ripped off the consumer for a century yet these bankers will believe all the BS bankers tell them. The media will be manipulated to sing the ‘protection’ narrative.

Big bankers will win [mostly]

In Australia, two of the big four clearing banks, ANZ and NAB have just launched A$ stablecoins.

If they have any brains they will issue all clients a wallet to use their stablecoin and launch merchant services, enough the world to use their wallet and coin.

The people are going to HATE these two banks winning the stablecoin war yet they will.

YES, ANZ and NBA are corrupt organisations where the people hate their employees YET they were smart to get ahead of the market and in Australia, they will win the wallet wars.

And if they are super-smart they will push all australians to open up these new wallets and they will take millions of customers from their competitors. They will grab their payment wallets and then be placed to grab these new clients lending and business banking!

The banks who are slow to this party are in deep crap because they are not fighting bitcoin, they are fighting the biggest banks in the country.

And the Australian central bank, whose own crypto must be a decade away from launching effectively, will cheer because the status quo is not upset by foriegners or nasty fintechs, it is just a simple war between regulated big boys so they are not to blame.


In the next three years, major banks will launch stablecoins in every country in the world. They will launch a Wallet War between themselves.

Regulators/central banks will simply demand wallets to be locally hosted by regulated companies.

By 2026, payments will be crypto. money will be sent anywhere instantly. A fortune will be saved in exchange rates, transfer fees, merchant fees, etc.

Then Central Banks will launch their own currency with the largest wallet controllers, their big bank friends, and the stablecoin market will be taken over by the CBDC. It will not die because not trusts central bankers and their politican owners not to try to control the blockchain yet change will be orderly and the big boys remain in control.

Crypto will have delivered on of its promised. The orginial creators of crypto will have their heart broken. Again.



Ed Ludbrook - Future of Crypto

I am Financial Futurist, Educator & Entrepreneur. Multi-million selling author in 20 languages. The Future of Crypto book coming.