How Stablecoin Could Play a Role in Global Payments

Stablecoins and Payment Landscape - Stablecoins offer a simple way to hold US dollars, particularly in countries with unstable currencies or restricted access to USD [5][6] - Stablecoins present opportunities in global payments, especially for cross-border transactions and migrant worker remittances, disrupting traditional players like Western Union and banks [5][8] - While stablecoins may introduce price pressure, they are not significantly impacting consumer payments but rather disrupting existing financial institutions [8] Visa and Mastercard's Role - Visa and Mastercard possess efficient global networks, making alternative payment solutions potentially redundant [4] - Visa and Mastercard are involved in the stablecoin ecosystem and anticipate revenue generation from it [2][3] - Stablecoins can drive more business to networks like Visa and Mastercard by connecting consumers and merchants [3] Challenges and Opportunities - While stablecoins offer opportunities, fees may simply shift from one entity to another in transactions [7] - Distinguishes between the use cases and monetization of stablecoins, highlighting their utility in countries with restricted dollar access [6]