Stablecoins Surpass Visa Mastercard in Online Payments with 7% Lead

Stablecoins, once considered mere tools for traders, are now emerging as the dominant infrastructure for online payments, surpassing traditional giants like Visa and Mastercard. This shift is evident in the onchain transaction volume, where stablecoins have taken a 7% lead, marking a significant change in the digital payment landscape. The rise of stablecoins can be attributed to their speed, low cost, and increasing integration by major players such as PayPal and Stripe. These digital assets, indexed to real-world currencies, offer the stability of fiat money combined with the flexibility of blockchain technology, making them an attractive option for international transfers, automated payments, and optimized treasury management.

One notable example is Tether, the issuer of USDT, which holds 113 billion dollars in U.S. Treasury bonds, more than Germany. Tether alone generated 13 billion dollars in profits last year, demonstrating the financial power of stablecoins without the need for a central bank. This financial prowess, however, has raised concerns among regulators who are wary of the decentralized nature of these digital assets. Despite these concerns, stablecoins are increasingly being used in various applications, from predictive betting platforms to cross-border transfers, infiltrating the mechanisms of global digital commerce.

The passage of the Genius Act by the U.S. Senate represents a significant milestone in the regulation of stablecoins, providing a structural framework that could attract more traditional capital into the crypto space. However, the blockchain landscape remains fragmented, with cross-chain standards still in their early stages and a user experience marred by technical complexity. Businesses are seeking the benefits of stablecoins without the technological burden, highlighting the need for further development and integration.

The Bank for International Settlements (BIS) has criticized stablecoins for lacking uniqueness, elasticity, and integrity, arguing that they do not embody a proper currency. This criticism reflects the resistance from traditional financial institutions to the decentralized nature of stablecoins. Nevertheless, stablecoins are becoming the backbone of a transforming financial web, offering a frictionless flow of money without central control. This silent force is reshaping the Internet, where money moves freely and efficiently, marking a new era in digital finance.