Visa's Insights into the New Era of Stablecoins

Recently, the United States passed the GENIUS Act, marking a clarification in the regulation of stablecoins. A Visa executive published an article outlining their views on the future of stablecoins, attracting industry attention.

Visa believes that for stablecoins to achieve large-scale application, they need to be implemented on three levels: technology, reserves, and interface. Blockchain technology and compliant stablecoins have provided solutions for the first two levels, but the interface level still needs breakthroughs.

In this regard, Visa plans to leverage its powerful payment network and infrastructure to provide seamless integration for stablecoins. By incorporating Visa's services, stablecoins can achieve a more convenient payment experience and wider application.

Visa believes that stablecoins have found suitable scenarios in the cryptocurrency trading market and present significant opportunities in emerging markets. Especially for users in countries with exchange rate difficulties, as well as in scenarios like cross-border payments, stablecoins can play a unique advantage.

However, in developed markets, it remains unclear whether consumers are willing to use stablecoins for payment. The "GENIUS Act" brings regulatory clarity to stablecoins, opening potential pathways for further applications. Visa has been actively positioning itself in the stablecoin space, including deploying Visa credentials, providing local settlement, and cross-border payments among various directions.

Overall, the real application scenarios for stablecoins may be more in emerging markets outside of the United States. In these regions, the introduction of stablecoins can significantly enhance financial efficiency. Whether stablecoins can become a mainstream payment method in the future still requires time for validation. Visa will continue to pay attention to and participate in the development of this field.