Predicting the future is a dangerous business. In 1899, Charles Duel, then Director of the U.S. Patent Office, confidently declared that “everything that can be invented has been invented.”
Of course, history had other ideas.
I don’t want to fall into the trap Charlie did. But I feel that within a few years, almost every Australian is in a reasonably solid land that suggests that almost every Australian, whether they were planning or not, will use cryptocurrency technology.
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The catalyst arrived in Washington last week.
The US Senate has passed the Genius Act, a bipartisan bill that sets rules for dollar-backed stablecoins.
In a nutshell, Stablecoins are digital versions of currencies that are usually fixed one-to-one in the US dollar and backed by cash or assets like cash. Stubcoins are one layer of cryptocurrency.
To casual observers, this may all sound slightly dull. But if you’re a finance nerd, it’s noisy.
Traditional payments can take several days to resolve, delaying the time it takes for merchants to receive payments.
Stablecoins via blockchain offers “peer-to-peer” payments, reducing the number of parties in the current payment ecosystem, thereby reducing transaction costs and providing near-immediate payments.
In other words, Stablecoins can help businesses avoid traditional payment rails.
In the US, merchant groups are lobbying hard for genius behavior, with big names like Amazon, Expedia, Walmart, Stripe, Shopify and others interested or already invested in technology.
Naturally, major US banks are reportedly investigating whether to launch a combined joint stability coin in the face of this threat.
Meanwhile, Australians were paralyzed by the friction built into their payment systems.
Every time you tap a card, resolve invoices, or send funds abroad, the parade of intermediaries will be reduced.
Card networks, bank acquisitions, liquidators – each willing to take a little bit of your hard-earned money.
For international transfers, that’s even worse.
The average cost of transferring international banks in this country is 5.48%.
If you’re unlucky, there could be 12 intermediaries near you.
Even after considering future increased compliance costs, Stablecoin Technology almost certainly reduces this cost and returns money to the pockets of ordinary Australians.
Of course, not everyone sees cryptography as a solution.
Before his death in 2023, Warren Buffett’s business partner Charlie Munger described cryptographic technology as “in contrast to the interests of civilization.” Warren wasn’t that polite. But once again, Jamie Dimon, CEO of US Bank JP Morgan, described Bitcoin as a “scam” in 2017.
Given this history, it is not surprising that some banks still question the regulatory implications of being involved with the safety of the ridiculous and the involvement.
But even the biggest critics have adjusted.
Moving on to 2025, it appears that both Jamie Dimon and JP Morgan are huge supporters and participants in the world of Stubcoin, and other parts of the cryptosystem.
Meanwhile, Warren Buffett’s Berkshire Hathaway recently won a vivid $250 million in investments in a large Brazil-based crypto-friendly bank and JP Morgan client. A few weeks ago, Dimon said, “Go to it.”
At the same time, JP Morgan is piloting deposit tokens for clients of large institutions. Based on Crypto-Tech.
Incidentally, the same technology can also make investments much more efficient for everyday investors.
Currently, when you purchase an advised ETF, the advisor, broker routes the order, matches the exchange, and market makers (often the banks) are filled.
Meanwhile, ETF issuers manage the fund behind the scenes. All layers add a cost.
Frankly, we don’t build a system like today. So why are so many American banks busy building crypto products? No one wants to be outdated with these companies.
Some momentum is being built close to home. The Reserve Bank of Australia will soon report on Project Acacia, a pilot investigating the possibility that digital money will support the domestic wholesale market.
While most Australian homes don’t set up pulse races and more needs to be done, it’s important for financial services that have been struggling with a productivity slump for over a decade.
You will soon find yourself paying for morning coffee with Stubcoin Technology humming in the background.
Native Crypto platforms such as Swyftx provide more everyday financial services.
And like so many technological revolutions before that, you will barely notice when it happens.
In other words, you find yourself in a country that is more productive and prosperous. Your cash is not frittered into outdated and cumbersome financial plumbing.
Jason Titman is CEO of Swyftx
