TechFlow news, June 9 — Jack Zhang, co-founder of enterprise payments and financial platform Airwallex, questioned the practicality of stablecoins in mainstream cross-border currency transactions in a social media post. Zhang pointed out that for transactions between G10 currencies, existing banking systems can already transfer funds in real time at costs below 0.01%, making it difficult for stablecoins to offer more competitive solutions. He believes the off-ramp costs from stablecoins to recipient currencies are significantly higher than interbank foreign exchange trading.
Zhang stated that while stablecoins may offer regulatory arbitrage opportunities in emerging markets such as Latin America or Africa, their advantages are not evident in mainstream currency transactions. He also noted that, compared to technologies like artificial intelligence, the cryptocurrency sector has not demonstrated clear use cases over the past 15 years, and he remains skeptical about the future development prospects of Web3.
