Visa's Head of Crypto, Cuy Sheffield, expressed doubts about the ability of stablecoins to change everyday retail payments, emphasizing their significance in international transactions.
Stablecoins and Their Role in Payments
In a recent interview, Cuy Sheffield mentioned that stablecoins do not solve problems for retail payments in the U.S. He stated that most stablecoin activity involves high-value transactions rather than day-to-day purchases.
> "We don’t really think stablecoins solve much of a problem for retail payments," he stated.
Potential Use in Developing Countries
Sheffield also pointed out that Visa sees opportunities to use stablecoins to support dollar demand and improve financial access in regions like Latin America. Countries such as Brazil and Argentina have already seen growing stablecoin usage, and Visa aims to expand its presence in these markets by providing access to dollar-denominated assets.
Expert Opinions and Criticism of Stablecoins' Prospects
Other experts have differing views on the future of stablecoins. Matthew Graham, founder of Ryze Labs, noted that citizens in inflation-stricken economies are turning to stablecoins out of necessity. However, JPMorgan analysts described forecasts of the market growing to $2 trillion as "unrealistic," citing underdeveloped infrastructure. Meanwhile, Western Union CEO Devin McGranahan remarked that stablecoins are not usable for retail purchases.
> "Last I checked, you couldn’t spend stablecoins if you wanted to buy a Coca-Cola," he said.
Thus, while stablecoins are not seen as a revolutionary solution for retail payments, their potential to integrate with emerging economies remains significant.
