In today’s business landscape, every advantage counts.
And while the use of cryptocurrency at the point of sale is getting a lot of attention lately and is an interesting use case, experts are starting to realize that the true market fit and value of the products , for both payment companies and merchants, lies in stablecoins as a means of more efficient settlement and new product growth.
After all, in the first half of 2024 alone, stablecoins reached a value of over $2.6 trillion.
That’s why, for the B2B Outlook 2030 event, PYMNTS spoke with Ran Goldi, senior vice president, payments and networking at Fireblocks, and Nikola Plecas, head of marketing at Visa Crypto, to dissect the benefits and the myths surrounding blockchain-based payments, how to think about real-world applications, and how to unlock new revenue streams through blockchain.
“Blockchain is not going to solve world hunger. This is not a magic solution to all problems,” Goldi said. However, blockchain offers an upgrade to financial systems, he said, emphasizing that the real power of blockchain lies in faster and more transparent transfers of value, an area where stablecoins are already gaining traction. ground.
While traditional payment systems like Swift can take days to process transactions, Goldi said, stablecoins enable near-instant cross-border payments in “less than 10 minutes.”
And stablecoins, the panelists said, offer significant advantages over existing payment systems, including native programmability, strong auditability, rapid settlement, self-custody options and seamless interoperability.
However, the financial world finds itself at a pivotal moment, between enthusiasm and skepticism regarding blockchain technology.
The Promise of Blockchain: Going Beyond the Hype with Stablecoins
Unlike volatile cryptocurrencies, stablecoins are tied to fiat currencies, ensuring stability while providing the programmability and transparency businesses seek.
In this context, Plecas said that Visa’s role is to bridge the gap between traditional financial systems and the blockchain ecosystem.
“Our strategy is to create more utility for crypto holdings, allowing users to connect their balances to Visa credentials and spend in fiat currency at millions of merchants,” he said, noting that With over 60 crypto platforms now working with Visa, the company is helping unlock new use cases beyond speculative trading, including remittances, cross-border payments and payroll for the gig economy.
For payment providers like Visa, blockchain-based payments represent a lucrative opportunity for revenue expansion. Plecas pointed out that many regions do not have access to traditional banking infrastructure, but blockchain fills these gaps. Visa has enabled crypto wallets to issue payment cards that work without being tied to a traditional bank account, providing financial services to previously underserved markets.
Expanding on this theme, Goldi used the example of Stripe’s recent adoption of crypto-based payments. Gig workers and small suppliers in remote locations can now receive payments instantly, even when payment amounts are small. Blockchain is not about eliminating middlemen like Visa, Goldi said, but rather about improving the speed, transparency and efficiency of the payments ecosystem.
The Stablecoin Sandwich and Real-World Applications
Stablecoins represent a payment innovation with the potential to expand access to secure, reliable and convenient payments to more people in more places. It could even help unlock the holy grail of payments: transparent, secure and accurate cross-border transactions.
The concept of a “stablecoin sandwich,” a method of using stablecoins to transfer value between currencies, serves as a practical illustration of the effectiveness of blockchain in cross-border payments.
As Goldi explained, the process involves converting a currency, like the Mexican peso, into a dollar-pegged stablecoin (e.g. USDC). This digital currency is then instantly transferred to the destination country, where it is converted back into local fiat currency, such as the British pound.
He shared a concrete example: in Latin America, importers use stablecoins to pay Asian suppliers. Payments that previously took days are now cleared in minutes, reducing storage costs and customs delays. This speed gives payment providers a significant advantage in markets where efficiency is essential. “Payments companies that don’t adopt these solutions risk falling behind,” Goldi said.
Yet even though blockchain-based payments show promise, Goldi and Plecas emphasized that regulatory frameworks are essential to protect transactions and enable growth. They expressed hope that the United States, currently lagging behind in blockchain regulation, will soon catch up with the European Union’s progress. “The largest payment companies in the world are in the United States,” Goldi said. “If they adopt stablecoins within a strong regulatory framework, it could catalyze the biggest financial system upgrade of our generation.”
Plecas noted that regions with clearer regulations, such as Europe under the Markets for Crypto Assets (MiCA), have seen faster adoption of stablecoins. “Larger financial institutions are eager to explore tokenized assets,” he said, but they need regulatory certainty to do so at scale.
Looking Ahead: Embracing Transformative Change
A recurring theme throughout the discussion was the importance of abstracting from the technical complexity of blockchain. “We want payment companies to stop worrying about the intricacies of blockchain and start using these new rails,” Goldi said. His advice to payment companies: experiment with blockchain, even on a small scale, and gauge customer reaction. “Today, the demand for blockchain solutions is driven by end users: merchants who want faster settlements and gig workers who need instant payments.”
When asked what they envision for the next year, Goldi and Plecas predicted continued momentum in blockchain adoption, driven by improved regulation and technological advancements. Plecas also highlighted the importance of usability: “A year from now, I hope we see even more consumer-facing applications that abstract away the complexity of blockchain, focusing on solving real-world problems like fast, low-cost fund transfers. »
Goldi echoed this optimism, saying market demand for faster and more transparent payments will only increase. His message to payment companies was clear: “Don’t wait. Start experimenting with blockchain-based payments now, or risk losing out to more nimble competitors.
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