The history, evolution, and use of money revolves around enabling financial tools to grow livelihoods, businesses, and the overall economy as a result. Cryptocurrencies have great potential to enable a range of these tools — from inexpensive remittances, to digital payments for the unbanked and social microcredit to algorithmic micropayments. However, none of these applications are as compelling with a volatile cryptocurrency.
That’s where stablecoins come in. Sep Kamvar, founder of Celo (and co-author of the original whitepaper that described the Celo protocol) — and former professor at MIT Media Lab as well as personalization lead at Google and consulting professor at Stanford — shares what stablecoins are (cryptocurrencies who prices are stabilized via various mechanisms); what the different types of stablecoins are; and what the important considerations are for thinking about adopting them.
This talk was originally delivered at the inaugural a16z Crypto Regulatory Summit 2019, which brings together leading crypto experts and builders, other technologists, academics, industry executives, and government officials — along with forward-thinking regulators — to foster collaboration and the exchange of ideas around this important emerging industry.
The views expressed here are those of the individual AH Capital Management, L.L.C. (“a16z”) personnel quoted and are not the views of a16z or its affiliates. Certain information contained in here has been obtained from third-party sources, including from portfolio companies of funds managed by a16z. While taken from sources believed to be reliable, a16z has not independently verified such information and makes no representations about the enduring accuracy of the information or its appropriateness for a given situation. In addition, this content may include third-party advertisements; a16z has not reviewed such advertisements and does not endorse any advertising content contained therein.
This content is provided for informational purposes only, and should not be relied upon as legal, business, investment, or tax advice. You should consult your own advisers as to those matters. References to any securities or digital assets are for illustrative purposes only, and do not constitute an investment recommendation or offer to provide investment advisory services. Furthermore, this content is not directed at nor intended for use by any investors or prospective investors, and may not under any circumstances be relied upon when making a decision to invest in any fund managed by a16z. (An offering to invest in an a16z fund will be made only by the private placement memorandum, subscription agreement, and other relevant documentation of any such fund and should be read in their entirety.) Any investments or portfolio companies mentioned, referred to, or described are not representative of all investments in vehicles managed by a16z, and there can be no assurance that the investments will be profitable or that other investments made in the future will have similar characteristics or results. A list of investments made by funds managed by Andreessen Horowitz (excluding investments for which the issuer has not provided permission for a16z to disclose publicly as well as unannounced investments in publicly traded digital assets) is available at https://a16z.com/investments/.
Charts and graphs provided within are for informational purposes solely and should not be relied upon when making any investment decision. Past performance is not indicative of future results. The content speaks only as of the date indicated. Any projections, estimates, forecasts, targets, prospects, and/or opinions expressed in these materials are subject to change without notice and may differ or be contrary to opinions expressed by others. Please see https://a16z.com/disclosures for additional important information.