This quarter, it appears likely that the volume of stablecoin transactions will surpass that of Visa. According to research firm Sacra, the total payment volume of stablecoins could exceed that of Visa. However, the head of Visa’s crypto division, who disagrees with this perspective, does not believe stablecoins will achieve this level of success.
Contents
Ideal for Cross-Border Payments
Are Real Users Not Engaging in Stablecoin Transactions?
Stablecoin Transaction Volume in April
Ideal for Cross-Border Payments
In a blog post written by Jan-Erik Asplund, co-founder of Sacra, the firm emphasizes that stablecoins are an incredibly suitable solution for cross-border money transfers. Asplund suggests that the total payment volume of stablecoins could even surpass that of Visa, reaching over $4 trillion.
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Asplund asserts that stablecoins facilitate cross-border payments and offer a service that is not limited to business days, allowing for transactions to be completed within minutes. Additionally, the low cost of stablecoins is a standout feature, providing a much more economical option compared to traditional methods.
According to Asplund, every major bank is currently utilizing stablecoins in their payment infrastructures to enhance transaction efficiency. This indicates that stablecoins are increasingly being embraced and adopted in the financial world.
Are Real Users Not Engaging in Stablecoin Transactions?
Cuy Sheffield, Visa’s head of crypto, argues that there is “intense noise” surrounding the data on stablecoin transactions and suggests that these transactions, carried out by automated programs and bots, are not “traditionally acceptable.”
According to a recently launched dashboard by Visa, it is claimed that 90% of stablecoin transactions in the last 30 days were not conducted by real users.
Stablecoin Transaction Volume in April
In April, the total volume of stablecoin transactions reached approximately $2.2 trillion. However, only less than 10% of this volume, specifically $149 billion, was classified as transactions made by credit companies. The majority of the remaining volume consisted of automated transactions executed by bots and organizations such as centralized exchanges.
At the end of April, Visa announced a partnership with Allium Labs to develop a revised metric for stablecoin transactions on their dashboard. The company states that the purpose of this new metric is to eliminate potential distortions that could arise from artificial activities and other inflationary practices, aiming to provide more accurate and reliable data on stablecoin transactions.
Disclaimer:
The information presented in this article does not constitute investment advice. Investors should be aware that cryptocurrencies carry high volatility and therefore risk, and should conduct their own research.
