We stream data. We stream music. We stream video. With stablecoins, we are on the verge of streaming the entire economy.

Recently, U.S. dollar stablecoins achieved a noteworthy milestone, making up around 1% of the U.S. M2 money supply. While this may seem insignificant, its implications could be profound in the near future.

Stablecoins are expanding rapidly, with an annual growth rate of about 55%. While such growth rates may not be sustainable indefinitely, envisioning a future where stablecoins amount to nearly 10% of M1 (cash, notes, and accessible digital funds) is not far-fetched.

These coins are crafted for ease of access and usability, aligning perfectly with the attributes of the money supply. Indeed, on-chain services are increasingly resembling traditional banking services but are faster and cheaper.

Imagine if transferring funds was essentially free and instantaneous. Would that change how you manage your finances? It certainly could.

Currently, businesses hold cash in multiple global locations, akin to managing physical inventory. Due to the high costs and slow processes of cross-border transactions, companies need to maintain a significant amount of localized cash to cover expenses. This is compounded by the sporadic nature of customer payments linking predictable costs (like payroll) to unpredictable revenues.

In the foreseeable future, if international money transfers can occur rapidly and at no cost, businesses could dramatically reduce their cash reserves. Instead of holding two weeks’ worth of expenses, they might only need a day’s amount, with the option to centrally allocate cash as needed, thus optimizing their global cash management.

This revolutionary financial approach could extend beyond large corporations into everyday practices. What if employees were compensated daily based on actual hours worked? Why continue the traditional monthly billing for utilities when daily billing for electricity consumption is possible, dramatically shortening the payment timeline from up to 60 days?

It may sound outrageous, but the mathematics behind it is compelling. At a 5% interest rate, a $10 debt accrues just $0.50 in annual interest, translating to just $0.01 for every week of skipped payment. Considering current transaction costs on Ethereum Layer-2 solutions are often below $0.01, the business case is clear that such innovations are advantageous.

As transaction costs keep declining, the frequency and granularity of how we handle money will only continue to improve.

The evolution from purchasing music to streaming it reflects how technology redefines interactions. Initially, the notion of streaming music on demand, along with all its bandwidth and computational demands, seemed absurd. Today, it is a commonplace activity, overshadowing even video streaming. There’s no inherent reason to believe financial transactions won’t follow suit.

Typically, technological changes begin by streamlining current processes, reducing costs before evolving into entirely new models. Shifting to a financial streaming ecosystem could reshape economic frameworks in unexpected manners, with many companies currently holding sufficient cash to cover 12 weeks of expenses. In total, U.S. firms hold approximately $2 trillion in cash, with another $2.8 trillion in working capital loans outstanding. Transitioning to this model could unlock trillions for fresh investments.

This shift may also reshape individual behaviors. The longer the delay between an action and its reward, the harder it is to motivate people. Immediate rewards could provide more effective incentives for utilizing services during off-peak periods, showcasing the value of instant gratification.