American Express CEO Sees Stablecoins as Alternative to Traditional Payment Rails

American Express CEO Steve Squeri believes stablecoins can be a viable alternative to traditional payment rails, particularly for cross-border payments. While stablecoins will not fully replace existing payment systems, they can serve as a good proxy and substitute for ACH and Swift payments. Amex is taking a wait-and-see approach to stablecoins following the passage of the Genius Act, which provides a federal regulatory framework for stablecoins.

American Express CEO Steve Squeri has expressed optimism about the potential of stablecoins as a viable alternative to traditional payment rails, particularly for cross-border payments. While stablecoins are not expected to fully replace existing systems, they could serve as a good proxy and substitute for ACH and SWIFT payments [1].

Stablecoins, which are cryptocurrencies pegged to an external asset like the U.S. dollar, offer several advantages. They can provide faster and cheaper transactions, as they operate on blockchain technology that does not sleep, close on holidays, or require bank approval. This is particularly beneficial for cross-border payments, where traditional systems can be slow and expensive [1].

American Express is taking a wait-and-see approach to stablecoins, following the passage of the GENIUS Act. This bipartisan bill aims to provide a federal regulatory framework for stablecoins, recognizing their potential while protecting consumers from scams. The act supports transparency, mandates backing reserves for dollar-pegged coins, and encourages innovation [2].

However, not everything is perfect with stablecoins. Algorithmic stablecoins, like the failed Terra/LUNA system, have shown the risks of unbacked coins. Moreover, crypto platforms still face challenges and regulatory uncertainties [1].

Despite these challenges, stablecoins are being absorbed into the financial system. Businesses like Amazon and Walmart are exploring their own digital currencies or stablecoins to cut out middlemen like Visa and Mastercard. This could lead to significant cost savings and improved customer experiences [3].

In conclusion, stablecoins have the potential to revolutionize cross-border payments. While they may not fully replace existing systems, they could serve as a viable alternative, offering faster, cheaper, and more efficient transactions. With the passage of the GENIUS Act, stablecoins are being recognized and regulated, paving the way for their integration into mainstream financial systems.

References:
[1] https://www.fxcintel.com/research/reports/ct-state-of-stablecoins-cross-border-payments-2025
[2] https://finance.yahoo.com/news/crypto-banking-startup-dakota-raises-130044592.html
[3] https://www.heraldtribune.com/story/business/2025/07/21/evan-guido-stablecoins-are-taking-aim-at-financial-middlemen/84489185007/