In the world of cryptocurrency, stablecoins have been hailed as the solution to the volatility problem, offering merchants a stable unit of account. However, as the author points out, stablecoins have only solved one layer of the payment problem - making the unit of account easier. The real challenge lies in the payment rail, where stablecoins can mean different things on different chains. This is where the concept of routing comes into play, offering a solution to the fragmentation problem. The author argues that the next useful improvement in crypto payments is better routing, which can help merchants avoid the complexities of supporting multiple chains. They also emphasize the importance of direct settlement, where the accepted value reaches the merchant wallet without the need for platform custody. While routing has its challenges, such as swap routes failing or liquidity being thin, the author believes that it is the key to making crypto payments usable and accessible to the masses. In the end, the winner will be the checkout that makes the wrong-chain problem feel rare, visible, and recoverable, and stablecoin payments will finally start to feel as simple as they are perceived to be.
