Crypto News- In a whirlwind of transactions totaling a staggering $2.2 trillion, a mere $149 billion represented genuine payments. Stablecoins, those digital currencies tethered to the stability of assets like the dollar, were hailed as potential disruptors in the $150 trillion payments industry.
But hold the phone, Visa’s latest data spins a different tale.
Visa’s Revelation: Just 10% of Stablecoin Transactions Genuine
Surprisingly, fintech giants like PayPal and Stripe are dipping their toes into the stablecoin pool, enticed by recent technological advancements. PayPal even birthed its stablecoin, PYUSD, while Stripe opened its arms to merchants willing to transact in stablecoins online, signaling a shift towards acceptance. Still, the road for stablecoins in mainstream payments remains under construction. Pranav Sood, Airwallex’s executive general manager for EMEA, weighed in on the revelations.
“Stablecoins are still finding their feet as a payment mechanism. It’s not that they lack long-term potential—quite the opposite. But for now, the focus must be on optimizing existing systems,” Sood remarked.
Unveiling Visa’s Insights: The Pitfalls of Double-Counting in Stablecoin Transactions
Visa’s crypto head, Cuy Sheffield, chimed in, shedding light on a common pitfall: overestimating stablecoin volumes due to double-counting transactions across platforms. For example, converting $100 of USDC to PYUSD on Uniswap might erroneously inflate transaction volumes to $200.
Despite infrastructure leaps and a swelling curiosity in stablecoins, consumer demand remains lackluster. Many are deterred by the technology’s complexity and lack of user-friendliness, presenting a formidable adoption hurdle. Astonishingly, checks still dominate a significant chunk of US business payments, signaling a sluggish embrace of newer tech.
Meanwhile, Tether boasts a record net profit of $4.52 billion for Q1 2024, buttressing USDT’s stability and reliability.
Yet, Visa’s report unveils a shift in stablecoin market dynamics. USDC has snatched the transaction volume crown from USDT. But as a Forbes report aptly notes, headlines may oversimplify the reality. While USDT remains a stalwart, the nuanced landscape tells a different story.
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