Stablecoins vs. Visa: The Race for Payment Supremacy
According to Sacra, stablecoins could outpace Visa in total payment volume this quarter.
Sacra co-founder Jan-Erik Asplund highlighted stablecoins’ advantages in cross-border transactions, citing their convenience, speed, and lower costs compared to traditional methods.
However, Visa’s head of crypto, Cuy Sheffield, disagreed with Sacra’s assessment, pointing out concerns about stablecoin data accuracy. Visa’s recent dashboard revealed that a significant portion of stablecoin transactions were not made by genuine users, raising doubts about their actual usage.
Visa collaborated with Allium Labs to refine its stablecoin transaction metric, aiming to filter out artificial activity and provide a more accurate representation of genuine transactions.
Despite Visa’s skepticism, the total monthly stablecoin transaction volume has nearly doubled since the start of 2024. Tether (USDT) and Circle’s USD Coin (USDC) account for the majority of this volume.
READ MORE: Tether’s Market Dominance Slips Amid Rising Competition
In addition to Visa, other payment giants like PayPal and Stripe are embracing stablecoins. PayPal introduced its PYUSD stablecoin in 2023, while Stripe announced plans to accept stablecoin payments for online transactions in April.
Meanwhile, Ripple revealed its intentions to launch a USD-backed stablecoin to compete with existing market leaders.
The current stablecoin market capitalization stands at approximately $161 billion, with a daily trading volume of $37 billion, according to CoinGecko.
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.
