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first_img Decentralised.co: Stablecoins cannot solve the remittance problem on their own

Decentralised.co reported that the cost of sending $200 across borders is currently 6.36%, down from 9.67% in 2009, with the United Nations aiming to reduce it to 3% by 2030. Remittances consist of three parts: collecting from the remitter, transferring value, and paying the recipient, with the intermediate stage previously being slower and now the cheapest part. Receiving and paying require licenses, bank accounts, compliance, and payment networks. The process from Dubai to Manila takes about six steps, with only one step using blockchain.Pre-funded agent accounts decentralize operating capital. Tokenized dollars can be concentrated in a single funding pool, settled on Sundays, and rebalanced within minutes. Traders hold inventory and bear exchange rate risks. Félix Pago raised $200 million to facilitate remittances from the U.S. to Latin America via WhatsApp, with a16z leading a $87 million equity round and General Catalyst providing a $113 million credit line. Nium is now funding customer payments in USDC. a16z Crypto led a $10 million investment in Better Money. Conduit raised $36 million for corridors from Europe to Nigeria and Kenya, while Palla raised $14.5 million for white-label payments to thirty banks.The article states that stablecoins can fix pipeline issues but cannot resolve isolated systems related to legal matters or toll collection.

NEAR announces the next major protocol upgrade SPICE, which will shorten the block time to 200 milliseconds

NEAR officially announced the next major protocol upgrade SPICE (Separation of Consensus and Execution), which is a key step towards Nightshade 3. After the upgrade is completed, the NEAR block time will be reduced from the current 600 milliseconds to 200 milliseconds, achieving about a 3x speedup, approaching the maximum speed allowed by physical conditions. The core of SPICE is to decouple the consensus layer from the execution layer, allowing validators to complete block consensus without waiting for transaction execution, thereby reducing latency and supporting more complex, time-consuming transactions.NEAR stated that this upgrade will be the largest underlying architecture change since Stateless Validation in 2024. After the upgrade, the transaction experience of applications such as NEAR Intents and near.com will be further enhanced. Defuse Labs CEO Alex Shevchenko indicated that the final confirmation time for NEAR is expected to drop to about 0.4 seconds, faster than Visa's standard of about 3 seconds, achieving a payment experience close to "completed in the blink of an eye."NEAR also mentioned that faster block times are crucial for the AI Agent economy, enabling high-speed payments and complex transactions between agents, and allowing longer tasks to be executed across multiple blocks. Additionally, SPICE will pave the way for Nightshade 3 and lay the foundation for achieving cross-shard atomic execution in the future. The NEAR development team stated that this will help address the development complexity and potential vulnerabilities brought by asynchronous environments, improving network scalability and security.
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