Is stablecoin the future of money? - Part 2

This is the second article in a two-part feature.

In part one of this series, we explored what stablecoins are, how they differ from Bitcoin, and why their stability makes them more suitable for everyday use. Now we turn to how stablecoins are reshaping global finance—particularly in cross-border trade, central bank competition, and geopolitics.

Start with trade. Sending money across borders has long been a headache. Anyone who has tried to wire funds internationally knows the drill: high fees, long delays, and a maze of intermediaries. For small businesses and freelancers, especially in developing countries such as Jamaica and across the Caribbean, this can be a major barrier. Stablecoins offer a faster, cheaper, and more accessible alternative.

Imagine a Jamaican graphic designer working for a client in Canada. Traditionally, they would need a foreign bank account or a remittance service, both of which involve fees and delays. With stablecoins such as USDC or USDT, that same designer can be paid in minutes, directly to a digital wallet, at a fraction of the cost. No middlemen, no waiting days for settlement, and no fretting over exchange-rate slippage.

This is not just theory—it is already happening. In countries with unstable currencies or limited access to banking, stablecoins are becoming a lifeline. They allow people to store value in something more predictable than their local currency and to transact globally without needing permission from a bank.

Now consider CBDCs—Central Bank Digital Currencies. These are digital versions of a country’s official currency, issued and controlled by the central bank. Think of them as governments’ answer to stablecoins. Instead of relying on private firms to issue digital dollars, the central bank does so directly.

On the surface, CBDCs and stablecoins may look alike. Both are digital, both aim to modernise payments, and both promise faster, cheaper transactions. But the differences are significant.

First, control. CBDCs are centralised by design. Every transaction can be monitored, reversed, or restricted by the issuing authority. Stablecoins, depending on their architecture, can offer more privacy and autonomy. That matters in countries where financial surveillance is a concern.

Second, innovation. Stablecoins are already embedded in the wider crypto ecosystem. They are used in decentralised finance (DeFi), in smart contracts, and on global exchanges such as Coinbase and Binance. CBDCs, by contrast, remain in pilot stages in most countries. They are being designed cautiously, often with limitations that make them less flexible than their private counterparts.

Third, trust. Ironically, many people trust stablecoins more than their own governments. In places like Argentina, where inflation has eroded faith in the national currency, dollar-pegged stablecoins are seen as a safer store of value. Even in more stable economies, the idea of programmable money controlled by the state raises concerns about privacy and freedom.

MORE THAN A FINANCIAL TOOL

This brings us to geopolitics. Stablecoins are not merely financial tools — they are political ones. In a world where access to the global financial system can be weaponised, stablecoins offer a way around traditional gatekeepers.

Take sanctions. When a country is cut off from SWIFT — the global messaging system for banks — it loses access to international trade. With stablecoins, value can move across borders without touching the traditional banking system. That is both a feature and a risk. It empowers individuals and businesses, but it also alarms regulators and policymakers.

Governments are already responding. The United States is debating how to regulate stablecoins, with proposals ranging from strict oversight to outright bans on certain models. The European Union is rolling out its digital-euro framework. China has launched its digital yuan. And in the Caribbean, the Bahamas and Jamaica have introduced their own CBDCs — the Sand Dollar and JAM-DEX, respectively.

Yet here is the twist: even as governments push their own digital currencies, stablecoins continue to grow. Why? Because they are already useful. They solve real problems. And they are evolving faster than most central banks can keep up.

So where does this leave us?

Stablecoins are not perfect. They rely on trust in the issuer, and that trust can be broken. They are vulnerable to regulatory crackdowns. And they still depend on internet access and digital literacy, which are not universal. But they represent a bold step towards a more inclusive, efficient, and borderless financial system.

In Jamaica, where the dollar has steadily lost value over the years, stablecoins could offer a new kind of financial resilience. They could help small businesses trade internationally, allow families to receive remittances faster and cheaper, and give ordinary people a way to protect their savings. But that potential will only be realised if approached with clear eyes—understanding both the promise and the pitfalls.

As with Bitcoin, the technology behind stablecoins is open-source and evolving. The future is not set in stone. It will be shaped by how we use it, how we regulate it, and how we educate ourselves and others about it.

In the end, stablecoins may not replace money as we know it. But they are already changing what money can do — and who gets to use it.

Let the conversation continue.

Michael Ennis BA, MBA Information System Consultant Email: mail2michaelennis@gmail.com

Full disclosure: The author is not an investor in digital assets, including bitcoin. He, however, is a director of a bitcoin technology company.