Americans’ primary objection to using cash in the current financial system is that “there are too many fees to access and move their money.”
According to Coinbase (NASDAQ:COIN), stablecoins offer consumers “all the benefits of cash without the drawbacks, including being cheaper and faster to move.”
They’re a big part of the future of money – and they’re already “helping to update the system. As their importance grows, so does the urgency for clear stablecoin regulation.”
Coinbase further noted that Americans are fed up. Their #1 objection to using cash in the current financial system is that there are “too many fees to access and move their money.¹ Younger adults in particular (ages 18-34) feel the everyday pain points of dealing with the current financial system — including fees.”
At Coinbase, they’re working hard “to help update the financial system and bring 1 billion people into cryptocurrency because we believe crypto and blockchain technology can increase economic freedom and opportunity.”
Stablecoins offer consumers “all the benefits of cash without the drawbacks – they’re faster, more affordable, and more accessible than fiat money, but just as stable and secure.”
They bridge traditional, physical cash payments and the digital space “by helping currencies like the US dollar exist in digital form and move freely and efficiently on blockchains. Stablecoins are a big part of the future of money, and they’re already here.”
Physical cash no longer meets “the needs and expectations of today’s digitally savvy consumers. Fiat transfers can take days.”
Today’s consumers want payments that happen as fast “as the internet and with the reach of the internet, across borders, without compromising security.”
Coinbase pointed out that there are reasons “why physical cash has been so popular for so long. It’s private; stays stable in times of economic volatility; and supports instant payments person-to-person.”
These are strong upsides that we want to “carry forward in payment systems of the future.”
In particular, traditional payment processes are loaded up with fees and interest charges for people having the “privilege” of moving their own money.
Fiat transfers can come with fees “as high as 3%-6% for cross-border transactions. According to the Consumer Financial Protection Bureau (CFPB), credit card companies charged consumers more than $130 billion in fees and interest in 2022.”
Research conducted for Coinbase found “that not only are fees Americans’ top objection to using cash in the current financial system, but that Americans aged 18-34 are more likely than older adults to feel the everyday pain points of dealing with the current financial system and its big institutions — particularly on fees and international transactions.”
Stablecoins offer consumers all the benefits of cash “without the drawbacks:”
They’re more affordable: Sending a stablecoin via the blockchain can cost “a fraction of the cost of traditional payment rails — making them more appealing for consumers and merchants alike.”
- They’re just as secure: Dollar-backed stablecoins are pegged 1:1 to the US dollar, which means that their value remains steady and predictable.
- They’re more efficient: The blockchain provides near-instant settlements for peer-to-peer stablecoin transactions. Recipients get their money almost immediately regardless of their physical location.
- And, they’re more accessible: More than half of Millennials and Gen Z adults (over 50 million people)³ are taking part in the traditional financial system only sometimes or not at all. Access to stablecoins is governed by neutral software code, not by gatekeeper financial institutions with eligibility requirements.
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