Stablecoins now seem to be holding their own against their competitors in the cross-border transfer scene. According to on-chain data, transactions with these dollar-backed cryptos in April reached nearly $2.2 billion over the past 30 days. Based on this data, some experts predict that stablecoin trading volume could exceed that of Visa during the quarter. Shocked, the firm reacted and refocused the debate.
More than $2.2 trillion in transactions in April thanks to dollar-backed cryptos
The popularity of stablecoins in the cross-border transfer sector is growing in a market long dominated by powerful players like Visa, Mastercard and PayPal. This month, stablecoin transactions reached the 2.2 trillion mark to the delight of crypto enthusiasts.
Among them, Jan-Erik Asplund, co-founder of the Sacra research firm, a prediction for dollar-backed cryptocurrencies. In a recent article, the expert claims that the total volume of stablecoin payments could surpass that of Visa and reach $4 trillion this quarter.
Jan-Erik Asplund also noted that stablecoins are extremely suitable for cross-border transfers and are increasingly integrating into the financial landscape. He points out that cross-border stablecoin transfers only take a few minutes, which is not the case with competitors like Visa.
Asplund also notes that these services are available on both business and non-business days, and at much lower costs. Jan-Erik Asplund also indicates that all major banks have integrated stablecoins into their payment infrastructures to increase the efficiency of transactions.
As one can imagine, Visa, which does not intend to give its positive opinion to this laudatory speech on cryptocurrencies backed by the dollar, responded and made interesting details.
Visa's response to claims in favor of dollar-backed cryptos
Challenged by Sacra's predictions, Visa has published a dashboard that calls into question the theory of the imminent superiority of stablecoins. It reveals that only $149 billion, or less than 10% of stablecoin transactions in April, were carried out by humans. The remaining 90% would have been done by bots and not by real users.
For Cuy Sheffield, head of crypto at Visa, stablecoin transactions carried out by bots are not “acceptable”. The company now intends to collaborate with Allium Labs to eliminate possible distortions that could creep into the measurements of transactions made with dollar-backed cryptos.
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