Stablecoins are the greatest upgrade of infrastructure to payments in decades
For what? Because they are programmable, global and instant, making it a better choice for many types of transactions.
But when we think of payment products, there are generally four key criteria that we use to judge the efficiency: speed, cost, reliability and convenience. Stablecoins have clear advantages, but also several compromises compared to traditional payment rails:
- Speed: Stablecoins are faster than ACH and Wire transfers, and can compete with card payments.
- Cost: They are cheaper than cards, but can be less predictable due to gas costs.
- Reliability: generally strong, but depends on the stability of the blockchain on which they run.
- Convenience: They require crypto portfolios, which makes them less intuitive for consumer users compared to bank cards and transfers
For B2B cross -border payments, Stablecoins can change the situation. But for everyday transactions, cards are still dominating, due to their convenience and acceptance, especially in markets like the United States.
Currently, he has the impression that it is an early cloud computing. The stablecoins are powerful, but not yet transparent for all use cases. Companies always find how to connect and the configuration can be complex.
But just as the Cloud has eliminated the need for companies to manage its own servers, the stablecoins abstract the fragmented payment rails. Money will evolve as data, instant, programmable and without border. We head towards a world where payments are in chain, just as content is now on demand, where companies will not need to think of rails, just the results.
Over time, the intermediaries will disappear, the costs will compress and the stabbed will be the invisible engine behind world payments.
Now that we have covered the utility, let’s look at the adoption
Stablecoins are changing faster than any other world payment rail today. The total offer increased from $ 5 billion north of $ 220 billion in just over 5 years.
This market capitalization turns around, with 32 billions of dollars in volume of transactions in the stablescoins in 2024 only. If we double-click on the use of payments, this represents approximately 6 dollars or 3% of the global volume of cross-border payments today. And they always come together. In January of this year, the volume of payments was 2 times compared to January of last year.
Over the next five years, we expect 3% of the global volume of cross -border payments to reach 20%, Make payments to the hatch of 60 billions of dollars for payments.
In addition to that, we see an increasing regulatory clarity, which is a huge unlocking. In the United States, the Trump administration is pro Crypto, and we will probably see the regulation of stablescoin in the next 6 to 12 months, while in the EU, the Mica frame is now in force. It is not speculation. Stablecoins are already reshaping the infrastructure of world payments.