Cuy Sheffield, Visa's Head of Crypto, highlighted the potential of stablecoins to improve international payments, particularly in countries with underdeveloped banking infrastructures.
Significance of Stablecoins for International Payments
In his assertive position, Sheffield emphasizes that stablecoins have the potential to enhance efficiency and reduce costs in international transfers, being particularly promising in emerging markets.
However, their impact on retail payments in the U.S. is unlikely.
Visa's Role in Stablecoin Development
Visa's leadership, including Sheffield and other top executives, is working on developing stablecoin-backed solutions to improve payments, especially in regions with underdeveloped banking systems. The Visa team plans to utilize stablecoins like USDC on the Ethereum blockchain.
Future Impacts of Stablecoins on Payment Systems
Future changes may include reduced transaction costs and integration of new payment systems. Historical data from previous blockchain initiatives supports this trajectory, indicating stablecoin efficiency in emerging markets.
Thus, while stablecoins may not significantly impact U.S. retail purchases, their potential to transform international payments in less developed countries is considerable.
