Stablecoin Transaction Volumes and Adoption Challenges

SOURCE www.businesstimes.com.sg
More than 90% of stablecoin transaction volumes are not from genuine users, challenging the idea that stablecoins are ready to revolutionize the payment industry. Visa's data suggests that stablecoins are still in a nascent stage and need improvement to become widely accepted.

Key Points

  • Visa's dashboard with Allium Labs shows that only $149 billion of the $2.2 trillion total transactions in April were from 'organic payments activity.'
  • Industry experts believe that stablecoins need technical improvements and better user-friendliness to become widely adopted.
  • Stablecoin transactions can be double-counted depending on the platforms involved, leading to inflated volume figures.

Pros

  • Stablecoins have the potential to disrupt the payments sector due to their instantaneous and low-cost transactions.

Cons

  • Current stablecoin transaction volumes are mostly driven by bots and large-scale traders, not genuine users.