Stablecoins Outshine PayPal and Mastercard
Stablecoin usage is on the rise. In 2022, companies like PayPal and Mastercard transacted $1.36 trillion and $6.57 trillion, respectively.
Yet, stablecoins facilitated $6.87 trillion in transfers, surpassing these. Even Bitcoin outpaced Visa’s volume. Analyst Jamie Coutts noted that stablecoin adoption, outpacing Bitcoin and Ethereum, will speed up due to network effects and scalable blockchain improvements.
Stablecoin Payments Overtook Mastercard in 2022
👉 in '22 stables on various L1s transacted $6.87T, surpassing trad payment co's.
👉#Bitcoin did even more than #visa
👉This year volumes have plummeted 80% w/ hostile US regs and bear mkt exposing the extent of cyclicality/spec pic.twitter.com/tR5glBBZzR— Jamie Coutts CMT (@Jamie1Coutts) August 25, 2023
Following bank collapses in H1 2023, crypto rails gained importance among payment providers. 2022 already saw crypto rails outperform traditional fiat rails. However, 2023 was disappointing, with an 80% volume drop due to market cyclicality.
Stablecoin transaction growth is exponential, yet merely 0.5%-3% of traditional payments. Coutts sees stablecoins as a “definite factor,” set to increase massively.
Stablecoin users might soon surpass Bitcoin’s in 3-5 years, driven by payment integration, merchant partnerships, and asset-backed innovations.
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Addresses with over $1 stablecoin hit ATH at 17.4 million, growing over sevenfold since 2021, surpassing Bitcoin and Ethereum growth. Traditional finance integrates stablecoin payments; PayPal launched its U.S. dollar-backed stablecoin.
Visa and Mastercard invest in open networks. Coutts warns payment companies ignoring stablecoins to miss rapid scaling improvements, expecting more innovation ahead.
Alexander Stefanov
Reporter at CoinsPress
Alex is an experienced finance journalist and a cryptocurrency and blockchain enthusiast. With over five years of experience covering the industry, he deeply understands the complex and constantly evolving world of digital assets. His insightful and thought-provoking articles provide readers with a clear picture of the latest developments and trends in the market. His passionate approach allows him to break down complex ideas into accessible and insightful content. Follow up on his content to be up to date with the most important trends and topics - stay ahead of the curve with CoinsPress.
