Visa and Mastercard Say Stablecoin Usage Remains Minimal

Visa and Mastercard have both expressed that stablecoin usage remains minimal and does not currently pose a significant threat to their global payment processing operations [1]. According to the companies, the transaction volume associated with stablecoins is vastly lower than the annual trillions they handle. Visa processes around $15 trillion in payments yearly, and Mastercard follows closely behind. In comparison, stablecoin transactions remain at a much smaller scale [1].

Despite this, both companies acknowledge that stablecoins—digital currencies pegged to traditional fiat such as the US dollar—are gaining attention, particularly for their potential to facilitate faster, cheaper, and more accessible cross-border transactions [1]. However, Visa and Mastercard argue that, in most developed markets, consumers continue to rely on traditional financial systems and payment methods. The trust and infrastructure in these regions favor established payment solutions [1].

The companies also recognize that stablecoin usage might see more traction in countries with unstable local currencies or limited financial access. In such markets, people may turn to stablecoins to preserve value or transfer funds more efficiently [1]. Mastercard noted that they could foresee some growth in these economies, with Visa agreeing and highlighting the potential of digital currencies to serve unbanked populations [1].

While not dismissing the technology outright, Visa and Mastercard emphasize that they are monitoring developments and experimenting with blockchain-based innovations. For instance, Visa has tested USDC on the Ethereum network for cross-border payments, and Mastercard has participated in pilot programs and partnered with crypto platforms [1]. Both companies remain open to innovation, but only if it aligns with their standards of safety, reliability, and customer value [1].

In conclusion, stablecoin usage is still in its early stages and lacks the scale to challenge the dominance of Visa and Mastercard. However, the companies are not ignoring the potential of digital assets. They are actively exploring how blockchain could be integrated into their services, provided it meets their rigorous criteria for security and utility [1].

Source: [1] Stablecoin Usage Still Small, Say Visa and Mastercard (https://coinfomania.com/stablecoin-usage-visa-mastercard/)