Coinbase CEO Brian Armstrong believes that cryptocurrencies have become the best payment option globally. In a conference, he discussed Base, a layer-2 scaling solution on Ethereum 
$3,409 developed by Coinbase, which aims to bring global transaction approval times below one second and transaction fees under $0.01. Armstrong emphasizes that fast and affordable payments could enable new categories of applications.
Global Payment System
Armstrong highlights that a fast, cost-effective decentralized global payment system could reduce “frictions” in the economy. He asserts that minimizing small frictions in economic transactions could lead to significant increases in adoption. Today, messaging applications are free, resulting in billions of messages being sent. Armstrong expresses that a similar increase will occur in payments.
New Application Opportunities
Armstrong indicates that rapid, cheap global payment systems could facilitate small transactions on social media, paving the way for new business models. For example, actions like pressing a like button or upvoting content could be supported by tiny payments. He also mentions that a system allowing people to receive their salaries hourly could transform borrowing applications.
According to Armstrong, these new payment systems could alter the nature of economic relationships. He notes that the transition of messaging services to free use saw a substantial increase in usage. A similar trend is anticipated in payments, which could enable economic activities to be conducted more rapidly and efficiently.
This technology could democratize payment processes, granting broader access to financial services for larger populations. Armstrong asserts that such a system could provide significant benefits to consumers and businesses alike. Reducing friction in payment processes could enhance economic mobility and facilitate the development of new business models.
Armstrong’s vision suggests that the adoption of new technologies could make economic systems more effective and inclusive. Cryptocurrencies and the technology underlying them could transform payment processes and broaden economic opportunities. This indicates that future economic relationships could become faster, cheaper, and more transparent.
