Paul Brody, EY’s global blockchain leader and co-author of the 2023 book *Ethereum for Business*, discusses blockchain’s impact on payments, remittances, banking, and corporate finance with Global Finance. Today, stablecoins—cryptocurrencies designed to maintain a stable value, mostly pegged to the US dollar—dominate blockchain transactions rather than bitcoin. For example, last month the Ethereum blockchain processed $2 trillion in stablecoin payments, over 99% in US dollars. Stablecoins are especially popular in emerging markets with high inflation and are widely used for faster, cheaper cross-border remittances compared to traditional systems that take days and cost much more. Regarding a US central bank digital currency (CBDC), Brody argues the real need is for well-regulated stablecoins with proper asset backing. He points out central banks are uncertain about CBDCs’ purpose, sometimes influenced by initiatives like Facebook's digital currency plans. For corporate CFOs and treasurers, blockchain raises strategic questions: Are they connected to crypto systems?Can they handle stablecoin payments?Should bitcoin be part of their treasury portfolio?Can smart contracts automate procurement and operations?

Currently, most companies cannot accept stablecoin payments. Stablecoin issuers profit from transaction fees and interest on held assets (“float”), but fees are low due to competition and profits vary with interest rates. The role of banks will evolve: those reliant on credit card processing and transaction fees face disruption from nearly free stablecoin transfers, while regional banks focused on corporate finance may be less affected. Major custody banks like BNY Mellon and JPMorgan face both threats and opportunities by tokenizing assets, potentially expanding their services in digital asset management. Brody highlights that the lack of privacy on public blockchains limits corporate adoption of smart contracts, despite their potential to digitize and automate contracts for all kinds of assets. Private blockchains have failed to ensure true privacy, as participants can still see sensitive information about transactions among counterparties. All banks are expected to offer distributed ledger technology (DLT) services, integrating crypto alongside stocks and bonds, and providing new, sophisticated payment options such as transfers to Ethereum addresses. Stablecoins represent blockchain’s current “killer app, ” driving mass adoption. The stablecoin market will become highly competitive, with yield-bearing options emerging soon. Brody emphasizes that blockchain will not merely be a niche innovation but will transform global finance and commerce by integrating money, contracts, and goods into unified digital systems. This integration will dramatically reduce costly reconciliations; for example, paying a bill currently costs about $100 on average due to verifying purchase orders, contracts, and invoices separately. In the next 10-15 years, blockchain-based processes will seamlessly and invisibly handle all such transactions, becoming the essential “plumbing” of business-to-business operations worldwide.