Mastercard continues to assert that stablecoins are far from becoming a primary means of payment. Despite general interest in this technology, its use in everyday practice remains limited.
Technical Potential of Stablecoins
Mastercard's Chief Product Officer Jorn Lambert noted that stablecoins possess incredible technical potential, including fast transactions, 24/7 availability, low fees, programmability, and immutability. However, these characteristics alone are insufficient for their adoption in everyday payments.
Mastercard's Role in Supporting Stablecoins
Mastercard sees itself as a key infrastructure provider for stablecoin adoption, offering global acceptance, security, and regulatory compliance. The company is already collaborating with several projects, including Paxos and PayPal, to support initiatives that help stablecoins scale and become usable at checkout.
Barriers to Mainstream Adoption
Lambert pointed out that about 90% of stablecoin use is tied to crypto trading rather than everyday purchases. Significant barriers exist, including inefficient user experience and high dropout rates for using stablecoins for merchant payments. Additionally, complicated conversion processes lead to extra costs.
While stablecoins continue to evolve, their mainstream adoption in the financial system requires the resolution of many complex issues, with Mastercard positioning itself as a leader in integrating this technology.
