Stablecoin Volumes Expected to Surpass Visa, According to Research Firm Sacra
In what could be a significant milestone for stablecoins, research firm Sacra predicts that their total payment volume may soon exceed that of Visa. Sacra’s co-founder, Jan-Erik Asplund, believes that stablecoins are the ideal solution for cross-border money movements and could reach a staggering $4 trillion in payment volume, surpassing Visa’s numbers.
Asplund highlights the advantages of stablecoins in a blog post, stating that they enable cross-border payments to be completed within minutes, regardless of business days. Not only do stablecoins provide a fast and efficient option, but they are also cost-effective compared to traditional methods.
The increasing acceptance of stablecoins in the financial world is evident, as major banks are incorporating them into their payment infrastructures to enhance transaction efficiency. This trend further solidifies stablecoins as a viable option for cross-border payments.
However, Cuy Sheffield, Visa’s crypto head, disagrees with Sacra’s prediction. Sheffield argues that stablecoin transactions are not “traditionally acceptable” as they are often conducted by automated programs and bots. Visa’s newly launched dashboard claims that 90% of stablecoin transactions in the last 30 days were not made by real users.
In April, the total stablecoin transaction volume reached approximately $2.2 trillion. Surprisingly, only a small portion of this volume, around $149 billion, was classified as transactions made by credit companies. The majority of the volume consisted of automated transactions carried out by bots and organizations like centralized exchanges.
To address potential distortions caused by inorganic activities and artificial inflationary practices, Visa recently collaborated with Allium Labs to develop a revised stablecoin transaction metric for their dashboard. This metric aims to provide more accurate and reliable data on stablecoin transactions.
It is important to note that the information provided in this article is not investment advice. Investors should be aware of the high volatility and risks associated with cryptocurrencies and conduct thorough research before making any investment decisions.
