Visa’s Perspective on Stablecoins

Cuy Sheffield, Visa’s Head of Crypto, discussed the future of stablecoins at the Solana Breakpoint event in Singapore, emphasizing their growth particularly in non-dollar fiat currencies.

Future of Stablecoins

Sheffield highlighted that while the U.S. dollar is essential for cross-border transactions, the efficient conversion to local currencies is critical for adoption. He believes that local currency stablecoins will play a significant role moving forward.

Despite USD stablecoins currently dominating the market—representing 99% of the total supply—Sheffield expressed enthusiasm about the emergence of new stablecoins trying to carve out their niche, distinguishing themselves from well-known options like USDT and USDC.

Use Cases

Sheffield mentioned that users are increasingly aware of the stablecoins they use, particularly when they have a recognizable brand. He also pointed out potential backend use cases where brand recognition may not matter, focusing instead on the economics behind transactions.

New Entries in the Market

Recent announcements include BitGo launching its own stablecoin, USDS, which aims to incentivize institutions to provide liquidity, and PayPal’s PYUSD, now the fourth largest stablecoin. Fintech firm Revolut also plans to introduce a stablecoin soon.

Turning Point in 2024

Sheffield noted that 2024 might mark a significant shift, with non-crypto businesses exploring stablecoins to address payout challenges for overseas freelancers, particularly in regions like Nigeria and Argentina, where people prefer to receive payments in dollars.

Conclusion

The question remains whether stablecoins can become a crucial payment rail linking cross-border and local payments, a potential opportunity that has yet to be fully realized in the market.