Multicurrency: Are Stablecoins the FOREX of the Future?

Insights from Former Binance.US CEO

The dominance of the U.S. dollar in the stablecoin market has been long-standing, but this could soon change. According to Brian Shroder, former Binance.US CEO and founder of the 1Money Network, the future of stablecoins lies in multicurrency support—a transformative shift that could reshape global finance.

A Vision for Multicurrency Stablecoins

In a recent interview with CoinTelegraph’s Sam Bourgi, Shroder shared the vision behind launching 1Money, a layer-1 blockchain network designed to support multicurrency stablecoin payments. He explained:

“Our mission is to make stablecoin payments more accessible and practical for everyday use,”
highlighting critical use cases such as peer-to-peer transfers, e-commerce purchases, and cross-border remittances.

Shroder envisions a global network where stablecoins represent all major currencies, rather than focusing solely on the U.S. dollar. This approach aims to solve a range of issues in the current financial ecosystem, particularly for localized and cross-border payments.

The Current State of the Stablecoin Market

Stablecoins are digital currencies pegged to traditional fiat currencies, maintaining price stability while leveraging the efficiency of blockchain technology.

The stablecoin market, currently valued at over $222 billion, is dominated by:

• • Tether’s USDT and Circle’s USDC, which together account for 86% of the market, according to CoinGecko.
  • These dollar-pegged assets have fueled rapid adoption, but their limited scope leaves room for expansion into other fiat currencies.

Why Multicurrency Stablecoins Matter

Unlike traditional single-currency stablecoins, 1Money aims to create a network optimized for multicurrency payments, which Shroder believes are essential for the evolution of the market:

“We believe there is significant potential for stablecoins denominated in other currencies to grow, particularly as the stablecoin market evolves and diversifies, and as demand for localized stablecoin financial solutions and use cases increase, such as local commerce, the simplification of currency conversion, and cross-border trade.”

This vision addresses two major financial pain points:

1. 1. Localized Remittances: The ability to send stablecoins pegged to local currencies can reduce reliance on expensive and slow traditional remittance services.
   2. Currency Conversion: Simplifying currency swaps between stablecoins reduces friction for global businesses and individuals engaged in cross-border trade.

How 1Money Stands Out

While other companies—such as Ripple and the Global Dollar Network—are also building stablecoin-based payment systems, 1Money is unique in its native support for multiple stablecoins. The network will initially focus on fully reserved stablecoins, prioritizing issuers with strong reputations for compliance, liquidity, and market demand.

As Shroder explains, 1Money also plans to facilitate stablecoin-to-stablecoin swaps, making it easier for users to exchange assets seamlessly. This adds an essential layer of functionality to their ecosystem.

Stablecoins: Solve Real-World Problems

Many layer-1 and layer-2 blockchain protocols still struggle with issues like:

• • Unpredictable settlement times
  • High and volatile fees
  • Complex requirements for transactions, such as holding multiple assets to send one.

Stablecoins, however, offer practical solutions to these challenges:

• • Cheaper Cross-Border Payments: Sending a $200 remittance using stablecoins from Sub-Saharan Africa is about 60% cheaper than using traditional fiat methods, according to Chainalysis.
  • Enhanced Efficiency: Blockchain-enabled features like programmability and 24/7 availability make stablecoins a more transparent and faster alternative to traditional systems.

“Paired with blockchain-enabled favorable features such as programmability, stablecoins can offer cost efficiency, enhanced transparency, 24/7 availability and faster processing that traditional financial systems simply can’t match,” said IDA CEO Lawrence Chu.

Quinlan & Associates did a deep dive report into Stablecoins and the role of regulations in driving real-world payments. 

Stablecoins in E-Commerce

Despite their potential, stablecoins currently account for only 0.2% of global e-commerce transactions, according to a report by Quinlan & Associates. Yet, with the right infrastructure, they could revolutionize online payments by offering:

• • Lower transaction fees
  • Improved global accessibility
  • Streamlined currency conversions for international sellers and buyers.

Challenges Ahead

While the future of multicurrency stablecoins appears promising, challenges remain:

• • Regulation: Governments and regulators need to establish clear frameworks to oversee the issuance and use of stablecoins, especially in multicurrency formats.
  • Liquidity and Trust: Stablecoin issuers must demonstrate robust reserves to gain user trust and meet global demand.
  • Scalability: Building networks capable of handling large-scale transactions without sacrificing speed or security is critical for mainstream adoption.

The Road Ahead

If the blockchain industry is to go mainstream, stablecoins may lead the way. With their ability to reduce costs, simplify global payments, and improve financial inclusion, multicurrency stablecoins represent a key step toward solving many of the problems traditional finance has failed to address.

As Brian Shroder aptly summarized:

“A global network powered by stablecoins representing all major currencies could fix the inefficiencies of traditional finance and unlock new opportunities for commerce and remittances worldwide.”

The race to build the next generation of stablecoins is on, and the world is watching closely.