a16z comments: The term “stablecoin” will become outdated; the next one is “programmable money”

a16z crypto published an opinion piece on May 1 written by Robert Hackett, arguing that the term “stablecoin” is rapidly becoming outdated. Hackett’s core point is: when this class of assets was invented, “whether it can maintain a 1:1 exchange with the U.S. dollar” was the core achievement, so “stable” became the naming focus; but in today’s 2026, stability is now a basic baseline rather than a selling point—the real technical value lies in “programmable money”: it enables instant cross-border settlement, can be embedded into applications, and can be composed and called like software.

Core point: “Stability” is now the baseline; “programmable” is the innovation

A key line in Hackett’s article is: “Stability is now table stakes—it’s the prerequisite, not the focus.” The corresponding observation is: when users and institutions use assets like USDT, USDC, PYUSD, and DAI, they no longer ask the question itself—“Can it hold 1:1 with the U.S. dollar?”—because that has already been assumed as yes. The real driver of usage questions becomes: “What else can we build with it?”

“Programmable money” shows up in three concrete layers: first, instant cross-border settlement—traditional SWIFT systems require 1 to 3 business days, while on-chain stablecoin transactions can be completed within 30 seconds; second, embedded finance—applications can write payment logic into smart contracts, such as MoonPay’s 5/1 launch of a way for AI agents to directly use stablecoins to spend with Mastercard via the MoonAgents Card; third, composability—stablecoins can serve as base assets for DeFi protocols, seamlessly connecting with lending, derivatives, and yield strategies.

Word evolution: four candidates and the “horsepower fate”

Hackett suggests that stablecoin vocabulary may evolve in several directions in the future: “digital cash,” “programmable money,” “digital dollars/euros,” or simply “onchain assets.” But he predicts the final fate may be one of two: either “stablecoin” continues to exist like “horsepower,” but people no longer remember the original literal meaning; or it disappears altogether, becoming an invisible foundational infrastructure—“the way money operates.”

The horsepower historical analogy fits well—the unit was originally a marketing term used in the 18th century by James Watt to translate steam engine efficiency into “equivalent to how many horses” so buyers could understand it. Humans no longer rely on horses to drive machinery, but “horsepower” still exists in specification tables for cars, engines, and motors; it has become a pure technical unit. Stablecoins may take the same path: when the technology matures and baseline stability is no longer worth highlighting, even if the term “stablecoin” persists, it would only be a historical leftover.

Implications for the crypto industry: vocabulary shifts in the era of technical maturity

Hackett’s view isn’t just a word game—it reflects signals that the crypto industry is entering a “technical maturity” phase. On 5/1, Tether announced Q1 net profit of $1 billion and reserves of $8.2 billion; USDT’s role in financial infrastructure has already become equivalent to a systemically important financial institution (SIFI). On 4/28, a16z proposed stablecoin-based BaaS (Banking-as-a-Service), treating stablecoins as foundational building blocks of banking operations; this 5/1 commentary brings the vocabulary meaning of that trend to the forefront.

For crypto founders and investors, there are three practical takeaways in this piece: first, product design and market narrative no longer need to emphasize “we can hold 1:1”—that is already a default assumption for users; second, differentiated value comes from “programmable capability”—composability, embedding into applications, and being autonomously usable by AI agents; third, naming for future projects may no longer use the label “stablecoin,” instead shifting to more precise vocabulary describing function (such as “on-chain payment rail” and “programmable USD asset”). Vocabulary evolution often is the last mile of technical maturity. When the term “stablecoin” becomes fully outdated, crypto money may finally enter a normal phase of “money is supposed to work this way.”

This a16z commentary piece says: “The term ‘stablecoin’ will become outdated; the next one is ‘programmable money.’” The earliest appearance was on the Chain News ABMedia.