Stablecoins offer sub-cent payments, Armstrong says, as critics flag risks

Coinbase CEO Brian Armstrong has praised stablecoins for enabling instant global dollar transfers for under one cent, while critics have raised concerns about privacy and frozen funds.

Summary

• Armstrong says stablecoins let users hold major currencies and send money globally for under one cent.
• Responses questioned public transaction visibility and centralized issuers' ability to restrict access to funds.
• Tether's sanctions policy and Circle's USDC terms document circumstances in which transfers can be blocked.
• Coinbase's payment partnerships and Polygon's privacy tools show how companies are addressing everyday payment needs.

Brian Armstrong, writing on X on Nov. 6, said stablecoins give people access to dollars and other major fiat currencies, alongside the ability to send them instantly across borders.

His post described an existing use of the technology without announcing a new Coinbase product, supported market, or change to transaction fees. The statement focused on holding and transferring money, leaving the steps involved in buying stablecoins or converting them into local currency unaddressed.

Stablecoins give everyone in the world the ability to hold dollars (and many other major fiat currencies), and send them instantly anywhere in the world for less than 1 cent. --- Brian Armstrong (@brian_armstrong) November 6, 2026

Stablecoin transfers are one part of the payment process

Coinbase-built network Base describes its payment infrastructure as supporting continuous stablecoin settlement without banking-hour cutoffs. Its listed uses include international payroll, remittances, merchant payments, and accounts that let customers hold stablecoin balances.

The same page separates a payment into four steps: funding through a bank account, card or another provider; converting into stablecoins; settling across Base; and delivering funds to a recipient who can hold the tokens or use a supported cash-out service.

Armstrong's post did not specify a blockchain or payment provider, or say whether the sub-cent figure included conversion and withdrawal charges.

A live commercial example comes from Nium, which announced its Coinbase integration in April. Nium said clients could send and receive stablecoins and convert them into traditional currencies for payouts, with Coinbase supplying payment infrastructure, liquidity, wallets and custody.

According to Nium, the arrangement connects stablecoin payments with its network serving more than 190 countries. Its announcement described a service for banks, fintech companies and enterprises.

Public stablecoin payments can expose financial activity

One response to Armstrong's statement, posted by the account using the name 0xAye, accepted the speed and cost argument but questioned whether transparent blockchains provide the privacy people expect when using money.

His claim about speed and cost is right, but there's one part he hasn't mentioned. Dollars have indeed made it onchain, but on a transparent chain, everyone can see who holds how much and who is paying whom

this is where the test comes for @SeismicSys . Stablecoins solved the... https://t.co/7EIzdysgTY --- 0xAye (@0xayeee) November 6, 2026

The respondent argued that visible balances and payment relationships can make digital dollars resemble an open bank statement. The post promoted Seismic, placing its privacy criticism alongside support for a particular project.

Ethereum's privacy documentation describes the underlying issue: activity on its public ledger is visible, while addresses provide pseudonymity rather than an automatic guarantee of anonymity. Transaction patterns can expose sensitive information and potentially identify users.

Privacy features are already being offered for some stablecoin payments. As crypto.news previously reported, Polygon introduced private stablecoin transfers through Hinkal in May.

Polygon's announcement said the feature lets users send USDC and USDT without publicly displaying the sender, recipient, or amount. Transfers undergo transaction screening before execution, with privacy intended to limit public visibility while supporting compliance and audit capabilities.

Stablecoin issuers retain powers to block transfers

A separate response from the account named Grand Inquisitor Cicero called for decentralized, permissionless stablecoins, criticizing USDT because its issuer can freeze assets.

Tether's documented policy ties its freezing powers to sanctions enforcement. In December 2023, the company announced a wallet-freezing policy covering people on the U.S. Treasury's Office of Foreign Assets Control sanctions list, extending controls to secondary-market activity.

Circle's USDC terms similarly reserve the right to block transfers involving certain addresses. The terms describe restrictions connected with suspected illegal activity, breaches of its conditions, and valid government orders.

Circle states that its terms apply to people holding USDC even when they do not have a Circle Mint account. The provisions therefore cover holders outside its direct customer base.

Coinbase's merchant payment rollout began in the U.S.

Coinbase has pursued stablecoin use at checkout through its PPRO partnership, announced May 27.

The company said eligible merchants could enable stablecoin acceptance through their existing payment provider and dashboard. Its announcement described payments from hundreds of wallets, with no gas fees for buyers and round-the-clock settlement for merchants.

Coinbase identified the United States as the collaboration's launch market, with expansion into other regions planned. Merchants were instructed to contact their payment service provider to enable the integration.