Can someone ELI5 why Jack is wrong? I love stablecoins, but am probably more aligned with Jack than its boosters right now. Feels like the excitement around stables today smells a lot like emperor has no clothes

Investors keep asking me about stablecoin, and how that can reduce FX fees; if you send money from USD to EUR, and the receiving end still requires to receive EUR in their bank, I can’t see any ways stablecoin can reduce fees - off ramping from stablecoin to recipient currency

Jack Zhang

Can someone ELI5 why Jack is wrong? I love stablecoins, but am probably more aligned with Jack than its boosters right now. Feels like the excitement around stables today smells a lot like emperor has no clothes

https://x.com/awxjack/status/1931239220204486879

Very briefly. Hes stuck in % land of the traditional finance. His argument is you cant beat the 0.01% fee of the current system. But crypto does beat it. Crypto rails dont charge a percent. They charge be a flat fee regardless of size. And that fee is approaching fractions of a cent. 0.01% of 10,000 is still $1. 10-100x more expensive than moving the same amount on crypto rails. That percentage vs flat fee difference adds up and becomes ridiculous savings the more capital runs on crypto rails.