Coinbase CEO Brian Armstrong believes that cryptocurrency is poised to become the most efficient payment rail in the world. Speaking at a recent Goldman Sachs conference, Armstrong emphasized that the capabilities of cryptocurrency, particularly through Base, Coinbase’s layer-2 Ethereum (ETH) scaling solution, have radically improved global transaction efficiency. According to Armstrong, Base has brought transaction confirmation times down to less than one second and fees to under $0.01, creating a promising environment for the next wave of payment innovations.
Revolutionizing Global Payments
Armstrong’s excitement about crypto payments stems from their potential to transform financial systems. He argues that fast, low-cost, and global payments are paving the way for new types of applications and services, particularly within the realm of microtransactions. For example, he envisions a future where actions as small as clicking a “like” button on social media or upvoting content could be microtransactions—tiny payments powered by cryptocurrency.
The concept doesn’t stop with social media. Armstrong suggested that real-time payroll, where workers are paid by the hour or even by the minute, could replace traditional bi-weekly paychecks. He believes that fast, seamless payments could eliminate the need for payday loans, reducing the financial strain on millions of workers who rely on high-interest, short-term lending solutions between pay periods.
Removing Friction for Greater Adoption
One of the critical points Armstrong made was that even slight reductions in friction can lead to exponential increases in adoption. He illustrated this with an example from telecommunications: back when text messages cost around $0.25 each, about 25 billion texts were sent daily at its peak. Now, with free services like WhatsApp and iMessage, hundreds of billions of messages are sent every day.
Armstrong sees this same trend emerging in global payments. He argues that as crypto removes the friction traditionally associated with banking—such as high transaction fees, slow processing times, and geographic limitations—the result will be an explosion in the volume of financial transactions. This shift could redefine how people think about and engage with the global economy.
Unlocking New Opportunities
With low fees and near-instant confirmation times, Armstrong believes that crypto can enable entirely new business models. Microtransactions could change the way users interact with digital platforms, making it possible for content creators, developers, and consumers to exchange value seamlessly in tiny increments. This could unlock new ways of monetizing content and services, particularly for those who currently face barriers due to traditional payment processing limitations.
Moreover, a decentralized global payment system has broader implications beyond microtransactions. It can bring greater financial inclusion to populations that are underserved by traditional banking systems. The ability to transfer money across borders quickly and cheaply can empower individuals in developing countries, enabling them to participate in the global economy in ways that were previously impossible.
Crypto’s Role in Reducing Economic Friction
Armstrong’s optimism about crypto’s role in reshaping payments is grounded in the belief that removing friction leads to greater economic participation. Just as the cost of text messaging plummeted and usage soared, he believes the same could happen with financial transactions. By making it easier and cheaper to move money globally, cryptocurrency could unlock new opportunities for innovation, economic growth, and financial inclusion.
Crypto, Armstrong argues, is more than just an investment asset—it’s a fundamental upgrade to the world’s payment infrastructure. The transformative potential of fast, cheap, and global payments is vast, and as crypto technology continues to evolve, new applications will likely emerge, further accelerating adoption and making digital currencies a cornerstone of the global financial ecosystem.
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The Future of Payments
Armstrong’s vision paints a future where cryptocurrency eliminates many of the inefficiencies of the current financial system, allowing for real-time, borderless payments that are accessible to all. Whether it’s in the realm of microtransactions, payroll, or cross-border payments, the potential for crypto to revolutionize how we think about and use money is becoming clearer.
As Coinbase continues to push the boundaries with its scaling solutions like Base, it’s evident that the company is committed to making this vision a reality. With reduced transaction fees and near-instant confirmation times, Armstrong is confident that crypto is on the verge of becoming the world’s dominant payment rail, reshaping the way we interact with money in a digital world.