Visa and Stablecoins: Real Users vs. Trading Bots
Date: 2024-05-06 Author: Gabriel Deangelo Categories: BUSINESS
Visa and Allium Labs have teamed up to introduce an innovative dashboard that reflects stablecoin transaction activity. According to them, more than 90% of all transactions with these cryptocurrency assets are not associated with real users. This finding calls into question the stated capabilities of stablecoins as a payment tool.
Organic Turnover vs Trading Bots
Of the total stablecoin turnover of $2.2 trillion in April 2024, only $149 billion comes from actual payment transactions. The remaining funds are mainly processed through trading bots, automated services and large traders. This indicates a significant discrepancy between stated user interest and actual activity in this segment.
Challenges and Prospects
Pranav Sood, executive general manager for EMEA at payments platform Airwallex, notes that stable coins have potential, but improvements to existing mechanisms are necessary for their successful development. He calls for a focus on improving the efficiency and functionality of these tools.
Real Volume Measurement
The difficulty in calculating the actual volume of stablecoin transactions becomes apparent. As Visa's head of cryptocurrency, Qui Sheffield, points out, the same transaction can appear on different platforms and networks, which leads to double counting of amounts. Such anomalies can distort the real picture of the use of stablecoins in payments.
The Role of Visa in the Stablecoin Ecosystem
Visa previously named USDC the leader among stablecoins in terms of transaction volume. Their new dashboard helps you see real numbers. In April 2024, there were 172.26 million transactions in USDC and 169.24 million in USDT, totaling $1.69 trillion and $445.2 billion, respectively.
The new partnership with Transak also reflects Visa's commitment to expanding the ability to convert digital assets into fiat, which will improve the accessibility of cryptocurrency payments in the global economy.
