Over 90% of stablecoin transactions do not originate
from real users, a recent study by Visa and Allium Labs revealed. These
findings raise questions about the potential of stablecoins revolutionizing the
payment sector despite the optimism from industry leaders and the overall positive market
sentiment.
Stablecoin Potential in Payments
Out of a staggering $2.65 trillion in total
transactions in April, a mere $265 billion is attributed to “organic
payments activity,” highlighting the prevalence of non-user transactions.
This data was highlighted in a dashboard aimed at analyzing stablecoin
transactions to differentiate between authentic user activity and artificial
volume.
This revelation challenges the narrative that
stablecoins, tethered to assets like the dollar, are on the brink of
transforming the payments industry, a notion supported by fintech giants like
PayPal and Stripe. Despite the bullish sentiments expressed by industry
leaders, including John Collison of Stripe, the data underscores the nascent
stage of stablecoins as a viable payment instrument, Bloomberg reported.
While the potential for stablecoins to disrupt the
payments sector is acknowledged, practical hurdles remain. Airwallex’s Pranav
Sood highlights the imperative of enhancing existing payment infrastructure to
facilitate seamless adoption. Moreover, user-friendly interfaces are crucial,
with many consumers still favoring traditional payment methods due to ease of
use.
Despite the challenges, analysts predict a significant
surge in stablecoin circulation in the coming years, with the potential for the
total value to reach $2.8 trillion by 2028.
Expect ongoing updates as this story evolves.
This article was written by Jared Kirui at www.financemagnates.com.
