Exploring the Future of Blockchain-Based Payments with Stablecoins

The business landscape is constantly evolving, with every advantage counting towards success. While the use of cryptocurrency at the point of sale has been gaining attention, experts are now turning their focus towards stablecoins for more efficient settlement and new product growth in the payments industry.

In the first half of 2024 alone, stablecoins settled over $2.6 trillion worth of value, showcasing their potential in the market. To delve deeper into the benefits and myths surrounding blockchain-based payments, PYMNTS sat down with Ran Goldi, SVP, payments and network at Fireblocks, and Nikola Plecas, head of commercialization at Visa Crypto, at the Outlook 2030 B2B event.

Goldi emphasized that while blockchain isn’t a magical fix for every problem, it offers faster and more transparent value transfers, with stablecoins enabling near-instant cross-border payments in under 10 minutes. The panelists highlighted the advantages of stablecoins over traditional payment systems, including programmability, auditability, fast settlement, self-custody options, and interoperability.

Visa’s role in bridging the gap between traditional financial systems and the blockchain ecosystem was discussed by Plecas, who mentioned the company’s strategy to create more utility for crypto holdings. With over 60 crypto platforms now working with Visa, new use cases beyond speculative trading are being unlocked, such as remittances, cross-border payments, and payroll for the gig economy.

The concept of the “stablecoin sandwich” was introduced as a practical illustration of blockchain’s efficiency in cross-border payments. By converting currencies into stablecoins for instant transfers, businesses can streamline their payment processes and reduce costs. Goldi shared a real-world example of how stablecoins are revolutionizing payments for importers and suppliers in Latin America and Asia.

Both Goldi and Plecas stressed the importance of regulatory frameworks in safeguarding transactions and enabling growth in the blockchain space. They expressed hope for the U.S. to catch up with the EU in terms of blockchain regulation, as clear regulations have led to faster adoption of stablecoins in Europe.

Looking ahead, the panelists predicted continued momentum in blockchain adoption, driven by improved regulation and technological advances. They emphasized the importance of usability in consumer-facing applications and urged payment companies to start experimenting with blockchain-based payments now to stay ahead of the competition.

Overall, the discussion highlighted the transformative potential of blockchain-based payments and the need for businesses to embrace this technology to meet the evolving demands of customers and the market.