In this recent episode of the *Bitcoin, Fiat, and Rock and Roll* podcast, veteran payments expert Tony McLaughlin laid out a sweeping vision for the future of money—a future, he argues, that will be built not on traditional banking infrastructure, but on public blockchains and stablecoins. With over three decades of experience in finance, including work with major banks and a leading role in the development of the Regulated Liability Network (RLN), McLaughlin now champions a more radical thesis: stablecoins are not just digital tokens, but the next evolutionary stage in monetary instruments—akin to the traveler’s checks of the past, but fit for the digital age.
Blockchain as an elegant solution
McLaughlin’s thesis begins with a basic observation: today’s financial system relies heavily on messaging between banks to coordinate payments, involving multiple balance sheets and considerable friction. Blockchain, he argues, offers a more elegant solution—a state machine that simplifies coordination by creating a shared ledger of ownership.
This realization, according to McLaughlin, led him to question the prevailing industry focus on private, permissioned blockchains. While many institutions still explore closed blockchain systems, McLaughlin contends these efforts face an insurmountable „boot problem“: they struggle to scale due to limited network effects. Public blockchains, by contrast, already exist and offer the possibility of widespread adoption without the need to build from scratch.
A key moment in McLaughlin’s journey came, he says, “the day after the U.S. election,” when it became clear to him that U.S. banks would eventually be allowed to participate in public blockchain networks through stablecoin regulation. From that day on, he decided to abandon private blockchain initiatives in favor of a public, permissionless infrastructure—a decision he describes as his own “Thanos snap” moment.
More than just a traveler’s check
The conversation also drew a historical parallel between stablecoins and traveler’s checks. McLaughlin noted that both are bearer instruments, fully collateralized and used for payments. The critical difference is that stablecoins are digital. “It took me 30 years to realize that a stablecoin is just a traveler’s check made of information,” he admitted.
This insight, he argued, reframes the future of payments. Where traditional finance sees deposits and transfers as multi-party messaging exercises, McLaughlin envisions a world where stablecoins operate as programmable, cash-equivalent instruments, clearing in real time via public blockchains. His ultimate goal is for every bank and fintech to be able to send and receive stablecoins, just as they do today with checks, ACH, and card payments.
The business rationale, he insists, is already compelling. With stablecoin market capitalization projected to grow substantially, financial institutions can earn fees and FX revenue simply by accepting and converting these instruments. “The revenue pool could reach \$36 billion annually,” he estimated, using a model based on current redemption rates and projected adoption.
Critical of current regulatory discourse
At the heart of McLaughlin’s proposal is Ubyx, a new network intended to serve as a clearing house for stablecoin transactions. While he avoids pitching the platform directly, he does advocate for a strategic shift across the industry: institutions should prioritize hosted wallets to receive stablecoins, not just issue them. This, he believes, will create the necessary infrastructure for a global acceptance network—paving the way for widespread adoption of both sovereign and non-sovereign digital currencies.
McLaughlin is also critical of current regulatory discourse around central bank digital currencies (CBDCs), particularly the digital euro. He argues that while CBDC development has focused on domestic use, stablecoins represent a truly global payment mechanism. “Stablecoins are already circulating. The smartest move is to catch and convert them into the local financial system,” he said, framing it as a public good that also benefits financial institutions.
The podcast hosts, Manuel and Stefan, probed the practical implications of his vision, including data needs, standardization (such as ISO 20022 for business payments), and the role of central banks. McLaughlin was emphatic: “Once stablecoins become cash equivalents, they become the dominant form of payment on the planet.”
While skeptics may point to unresolved regulatory, operational, and privacy issues, McLaughlin’s analogy-driven logic offers a framework rooted in financial history. Whether or not stablecoins truly become the streaming equivalent of money, his call for banks to “catch and convert” rather than resist may mark a pivotal inflection point in how the industry approaches digital assets.
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