Key Takeaways
- Stablecoins reduce costs and settlement times in global transactions.
- The “stablecoin sandwich” model is effectively used in US-Mexico transfers.
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Visa and PayPal executives advocated for the broader adoption of stablecoins during a panel at the DC Fintech Week forum earlier today.
Visa’s Head of Crypto, Cuy Sheffield, and PayPal Digital’s CEO, Jose Fernandez da Ponte, underscored the transformative potential of stablecoins in streamlining cross-border transactions and reshaping global payments.
The conversation centered around how stablecoins, once primarily used in crypto trading, are now becoming essential tools for streamlining international business-to-business (B2B) and peer-to-peer (P2P) payments.
Stablecoins can significantly reduce settlement times, allow for 24/7 transactions, and minimize the costs associated with traditional cross-border payment methods, such as SWIFT transfers.
Fernandez da Ponte emphasized that stablecoins are helping companies move money faster and more efficiently across borders, allowing for quicker repatriation of profits and better foreign exchange rates.
He noted that CFOs are starting to adopt stablecoins as they realize the benefits of immediate settlement and reduced counterparty risks.
Sheffield, while discussing the evolving applications of stablecoins, introduced the concept of the “stablecoin sandwich,” where fiat currency is used on both ends of a transaction, with stablecoins facilitating the transfer in the…
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