crypto for all
A
A

The crypto threat to dethrone Visa!

Tue 07 May 2024 ▪ 3 min of reading ▪ by Luc Jose A.
Payment

Stablecoins now seem to be holding their own against competitors in the cross-border transfer arena. According to on-chain data, transactions made with these dollar-backed cryptos reached nearly $2.2 trillion over the past 30 days in April. Based on these figures, some experts predict that the volume of stablecoin transactions could surpass that of Visa during the quarter. Shocked by the claim, the firm has responded and refocused the debate.

Crypto :

More than $2.2 trillion in transactions in April thanks to dollar-backed cryptos

The popularity of stablecoins in the cross-border transfer sector is increasingly weighing on a market long dominated by powerful players like Visa, Mastercard, and PayPal. This month, stablecoin transactions have hit the $2.2 trillion mark, much to the delight of crypto enthusiasts.

Among them, Jan-Erik Asplund, co-founder of research firm Sacra, has made a prediction for dollar-backed cryptocurrencies. In a recent article, the expert claims that the total volume of stablecoin payments could exceed that of Visa, reaching $4 trillion during this quarter.

Jan-Erik Asplund has also pointed out that stablecoins are extremely suited to cross-border transfers and are increasingly integrated into the financial landscape. He emphasizes that cross-border stablecoin transfers take only a few minutes, unlike competitors like Visa.

Asplund also notes that these services are available on business days as well as non-business days, and at much lower costs. Furthermore, Jan-Erik Asplund indicates that all major banks have incorporated stablecoins into their payment infrastructures to increase transaction efficiency.

As one might expect, Visa, which does not intend to endorse this laudatory narrative about dollar-backed cryptocurrencies, has countered with some interesting clarifications.

Discover our newsletter This link uses an affiliate program.

Visa’s Response to Claims in Favor of Dollar-Backed Cryptos

Challenged by Sacra’s predictions, Visa has published a dashboard that challenges the theory of the imminent superiority of stablecoins. It reveals that only $149 billion, or less than 10% of stablecoin transactions in April, were made by humans. The remaining 90% were supposedly carried out by bots and not by real users.

According to Cuy Sheffield, Head of Crypto at Visa, transactions in stablecoins made by bots are not “acceptable”. The company now intends to collaborate with Allium Labs to eliminate any potential distortions that may creep into measurements of transactions made with dollar-backed cryptos.

Maximize your Cointribune experience with our 'Read to Earn' program! Earn points for each article you read and gain access to exclusive rewards. Sign up now and start accruing benefits.


Click here to join 'Read to Earn' and turn your passion for crypto into rewards!
A
A
Luc Jose A. avatar
Luc Jose A.

Diplômé de Sciences Po Toulouse et titulaire d'une certification consultant blockchain délivrée par Alyra, j'ai rejoint l'aventure Cointribune en 2019. Convaincu du potentiel de la blockchain pour transformer de nombreux secteurs de l'économie, j'ai pris l'engagement de sensibiliser et d'informer le grand public sur cet écosystème en constante évolution. Mon objectif est de permettre à chacun de mieux comprendre la blockchain et de saisir les opportunités qu'elle offre. Je m'efforce chaque jour de fournir une analyse objective de l'actualité, de décrypter les tendances du marché, de relayer les dernières innovations technologiques et de mettre en perspective les enjeux économiques et sociétaux de cette révolution en marche.

DISCLAIMER

The views, thoughts, and opinions expressed in this article belong solely to the author, and should not be taken as investment advice. Do your own research before taking any investment decisions.