- Dominance of Dollar-Based Stablecoins
- Diversity of Stablecoin Offerings
- Stablecoin Prospects and Usage
Visa's Head of Crypto, Cuy Sheffield, has predicted significant growth for stablecoins based on non-dollar fiat currencies in the coming years. The statement was made at the Solana Breakpoint event in Singapore.
Dominance of Dollar-Based Stablecoins
Sheffield noted that currently, the stablecoin market is 99% composed of coins pegged to the US dollar, such as USDT and USDC. He emphasized that while the dollar is great for cross-border transactions, efficient conversion to other local currency stablecoins is also essential.
Diversity of Stablecoin Offerings
Sheffield highlighted that the variety of stablecoin offerings is increasing, with attempts to differentiate from the dominant dollar options. While most users are now familiar with the concept and purpose of stablecoins, it is crucial to consider the economic aspects rather than just the brand behind the stablecoin.
Stablecoin Prospects and Usage
Sheffield stated that 2024 will be a significant year for stablecoins as non-crypto businesses increasingly use them to solve payment challenges for offshore freelancers. He noted that many freelancers in countries like Nigeria and Argentina prefer to be paid in dollars, making stablecoins a practical solution for international payments. Additionally, new entrants like PayPal's PYUSD and BitGo's USDS are striving to gain a foothold among established companies.
Stablecoins continue to evolve, attracting new participants and offering various solutions for international payments. 2024 is expected to be a crucial year for the growth and adoption of stablecoins based on non-dollar fiat currencies.
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