The Stablecoin Remittance Problem: On/Off-Ramp Is the Real Bottleneck (2 minute read)

A crypto investor argues that the real bottleneck for stablecoin remittances isn't the blockchain rails but consumer behavior and last-mile currency conversion.

What: Regan Bozman from Lattice Fund responds to criticism that stablecoins don't actually reduce remittance costs by arguing that while on/off-ramps will become fast and free in G10 countries within 1-2 years, the real unlock is getting people to hold USD stablecoins and only convert to local currency when spending rather than immediately upon receipt.

Why it matters: This reframes the stablecoin remittance debate by acknowledging critics' valid point that the expensive part isn't moving money on-chain but converting it to local currency and cashing out, shifting the discussion from a solved technical problem to an unsolved behavioral and infrastructure challenge.

Decoder

Stablecoins: Cryptocurrencies pegged to stable assets like the US dollar to avoid volatility
On-ramp/off-ramp: Converting between traditional currency and crypto (on-ramp) or back to traditional currency (off-ramp)
G10 countries: Group of ten major developed economies including US, UK, Canada, Japan, and major European nations

Original article

Regan Bozman (Lattice Fund) responds to skepticism about stablecoins reducing remittance costs to zero by reframing the problem: on-ramp/off-ramp for local stablecoins will be fast and free for most Western G10 countries within 1–2 years, but the biggest unlock is changing consumer behavior to holding USD and only converting to local currency at point of spend rather than at receipt. The thread responds to the valid criticism that stablecoins only solve the money-movement leg (which is already cheap) while the last-mile conversion and cash-out remain expensive, arguing that the behavioral and infrastructure shift is coming but is the real constraint, not the rails.