Recent research from Sacra Research indicates that the total volume of stablecoin transactions might soon outpace that of Visa, a major payment processor. While stablecoins offer benefits for global payments, doubts linger about the authenticity of these transactions. Cuy Sheffield, Visa's head of cryptocurrency, has raised concerns that bots, not human users, could be driving a significant portion of stablecoin transactions.

Stablecoins are gaining momentum in the international payment sector, potentially surpassing Visa's transaction volume. However, questions persist about the validity of these transactions, particularly regarding automated activities.

Advantages in Cross-Border Payments

Jan-Erik Asplund, a Sacra Research co-founder, believes that stablecoins provide an efficient solution for international transactions. Unlike traditional banking systems, stablecoins enable quick and cost-effective transfers outside regular business hours. This efficiency could propel their transaction volume beyond $4 trillion, overtaking established players like Visa.

Challenges with Genuine Transactions

Despite the promise of stablecoins, doubts remain about transaction authenticity. Visa's Cuy Sheffield has expressed worries that bots, not genuine users, may be behind a considerable portion of stablecoin transactions. Recent Visa findings suggest that almost 90% of stablecoin activities in the past month did not involve real users.

Takeaways for Stakeholders

Stablecoins could transform cross-border payments with their speed and reduced fees.

The endorsement of stablecoins by major banks signals their legitimacy and potential integration into mainstream finance.

Stakeholders should assess the impact of automated transactions when gauging the growth and risks tied to stablecoins.

Visa has joined forces with Allium Labs to enhance the measurement and reporting of stablecoin transactions, filtering out distortions from non-human activities. This collaboration aims to provide more accurate data reflecting genuine human engagement in stablecoin usage. The results of these efforts could significantly shape the understanding and valuation of stablecoins in the financial realm.