Stablecoin Transactions Dominated by Bots and Traders, Visa Study Shows
According to a new study by Visa, around 90% of the total volume of transactions with stablecoins are not carried out by real users. In April 2024, the total volume of such transactions reached $2.2 trillion, of which only $149 billion were related to real, organic payments.
The study revealed that the majority of stablecoin transactions are conducted by software bots or large traders, highlighting the gap between the potential of stablecoins and their actual use in real payments.
Kay Sheffield, head of Visa’s cryptocurrency division, pointed out that stablecoins can be used in various ways on blockchains, either manually by end users or automatically through bots.
Challenges and Potential of Stablecoins in Payments
Pranav Sud, Executive Director of Airwallex for the European, Middle Eastern, and African markets, believes that stablecoins still have a long way to go as a payment instrument. Despite their long-term potential, Sud mentioned that stablecoin issuers need to address several issues. Many customers still do not find stablecoins convenient to use, especially in the US where commercial payments are commonly made by checks.
Visa introduced solutions for interacting with cryptocurrencies, stablecoins, and central bank digital currencies in 2021. Their plans to use USDC stablecoins and the Solana blockchain for international payments and settlements show their commitment to embracing the future of finance.
