Chamath Palihapitiya: Stablecoins are key for Starlink's global expansion
This strategy could set a new standard
In a recent episode of the All In podcast, venture capitalist and Social Capital CEO Chamath Palihapitiya revealed that SpaceX widely accepts stablecoin payments in developing countries for its Starlink satellite internet services.
According to Palihapitiya, this strategy allows SpaceX to avoid the risks of local currency devaluation and the challenges associated with international remittances. Once stablecoins are transferred to the U.S., they are converted back into U.S. dollars.
Given Starlink's mission to provide high-speed internet to everyone on Earth, it makes sense for them to prioritize stablecoin payments. In developed regions such as North America and Europe, people primarily rely on traditional payment methods like Visa, MasterCard, and bank transfers, which are widely accessible and functional.
SpaceX’s strategy could set a new standard
In developed countries, few people seek to use cryptocurrencies for everyday purchases since they are viewed more as investments, and spending them can incur taxes. Conversely, in regions like Africa, Asia, and Latin America, large payment networks are less prevalent.
Merchants engaged in international trade often face difficulties dealing with multiple local payment systems. Cryptocurrencies, particularly Bitcoin and stablecoins, are gaining popularity because they allow the use of U.S. dollars digitally without requiring a bank account.
Chamath Palihapitiya cited SpaceX as an example of adapting to existing market conditions and urged making stablecoins the "standard payment rails in the United States."
Stablecoin trading volume hits records as businesses increasingly acquire stablecoins, fueling expectations for Bitcoin's growth.
