Visa and Mastercard state that stablecoins do not pose a threat to their positions in the payment market. Despite the growing popularity of cryptocurrencies, traditional payment systems maintain their dominance.
Current Status of Stablecoins in the Market
According to Reuters, most stablecoin activity is still tied to crypto trading or used as a store of value. Around 90% of stablecoin volume is linked to crypto exchanges. Visa and Mastercard highlight that stablecoins do not provide the same predictability, wide acceptance, and fraud protection as traditional card networks.
Visa and Mastercard's Investment in Stablecoins
Both companies are actively investing in stablecoin integration and infrastructure to bridge traditional finance with the crypto world. With the introduction of clearer regulatory frameworks, stablecoins are gradually gaining more acceptance, especially in countries facing unstable fiat currencies or high inflation.
Conclusion and Future of Stablecoins
While many merchants in the U.S. are attracted to stablecoins for their lower fees and faster payment processing, Visa and Mastercard still maintain their dominance. Most stablecoins remain confined to the crypto space, whereas Visa and Mastercard are deeply embedded in the global payment infrastructure.
The current situation shows that while stablecoins are evolving and growing in popularity, they still cannot compete with the established standards and infrastructure of Visa and Mastercard.
