Stablecoins have already evolved into an increasingly important part of global finance, with monthly transaction volumes now exceeding $1 trillion, or +160% y/y.

Philippe discussed the transformative potential of stablecoins with Stripe Co-Founder and CEO Patrick Collison at a recent company event. In addition to his assertion that stablecoins “should absolutely revolutionize the financial system,” Philippe made three bold predictions:

• Stablecoins will replace checking accounts: The high yields offered by stablecoins could render checking accounts obsolete, effectively rebuilding the modern banking system on-chain.

• Stablecoins will become the world’s offshore bank: Citizens of countries with unstable economies — from Argentina to Turkey — will have access to safe, dollar-based savings outside of their local systems.

• Stablecoins will reinforce the dollar’s dominance: When the choice is between holding your wealth in a U.S. dollar-pegged asset vs anything else, the answer is obvious.