Visa has announced its strategy to use stablecoins, focusing on enhancing the efficiency of international payments, particularly in emerging markets.
Role of Stablecoins in International Payments
Visa's head of crypto, Cuy Sheffield, emphasized the importance of stablecoins for cross-border payments, especially in emerging markets where there is a demand for dollars but limited access to them. He stated, "We think the opportunity for stablecoins is overwhelmingly outside the United States, emerging market focused economies where there’s demand for dollars and not a lot of access."
Expanding Financial Access in Latin America
Stablecoins are expected to provide financial access by offering dollar-denominated digital value in regions like Latin America. Sheffield noted that "most of stablecoin’s volume is created by high-value transfers, not retail transactions."
Institutional Interest in Cryptocurrency
Visa's adoption of stablecoins reflects a growing trend of institutional interest in cryptocurrencies. However, its integration into Visa's infrastructure indicates a cautious approach to mass adoption, focusing on non-U.S. cryptocurrencies.
Visa's initiative highlights the strategic significance of stablecoins for financial transactions in a global context, emphasizing efficiency and financial inclusion, while not expecting significant impact on U.S. retail markets.
