A16z: ‘Stablecoin’ Label Outdated as Tokens Become Money

Robert Hackett, head of special projects at a16z crypto, wrote in a report Friday that the label ‘stablecoin’ no longer captures what these tokens do as they move toward programmable money and on‑chain dollars.

Hackett wrote that the term originated during crypto’s early, volatile years when tokens were built mainly to preserve value for everyday transactions. ‘The name was straightforward, if slightly defensive: not a volatile coin, but a stable one. It described the problem it solved perfectly. But the technology has since outgrown the label,’ he wrote.

He added that ‘stability is now table stakes. It’s a prerequisite, and not the point. The question is no longer ”will it hold its value?” But ”what else can we build with it?”’ Hackett suggested alternative descriptors such as ‘digital cash’ or ‘programmable money’ while noting those terms may feel clumsy as immediate replacements.

Hackett predicted the original name may persist even after it stops being descriptive, or gradually fade as people refer to digital dollars, euros and other on‑chain assets simply as money. ‘Most likely though, the technology will disappear into the background entirely and become just how money works,’ he wrote.

Developer and brand adviser John Palmer expressed a similar view, calling it ‘a bug’ to continue using ‘stablecoin’ and predicting the instruments ‘will probably 10x the impact of crypto thus far.’

The global market for these tokens has grown past $321 billion, according to DefiLlama. Adoption is expanding beyond retail crypto users: banks and institutional players are testing tokens for faster payments and settlement and are using programmable features to automate transactions and add financial functions on‑chain.

Stablecoins were originally designed to be pegged to a stable reference such as the U.S. dollar or gold. Market participants now use them for cross‑border transfers, treasury management and as infrastructure for decentralized finance.

Regulators and financial institutions are assessing ways to integrate these tokens into existing systems while addressing risks related to reserves, governance and market stability. Industry participants are focusing on how tokens can support new payment rails and programmable contracts rather than only on whether they can maintain a peg.