'Nothing Can Hold Back stablecoin Anymore': Is It Time to Remove Visa?

Stablecoin is one of the fastest-growing segments of the cryptocurrency market. Some analysts argue that they have been a rare success story suitable for both traditional finance and decentralization. But can stablecoin really replace giants like Visa and Mastercard? That question became urgent on June 19, when the stocks of both companies fell after reports that Amazon, Walmart, and other major US corporations are exploring payment systems based on stablecoin. Should Visa and Mastercard be worried? In 2024, stablecoin quickly surpassed Visa in transaction volume. It's a narrow gap, but it's iconic.

Frank Combay, CEO of Next Generation, shared that one of the main advantages of stablecoin is their accessibility to various types of users: Stablecoins issued by the ecosystem have a high competitive opportunity if providers can make them attractive enough to drive adoption. A key principle is the ability to access multiple platforms, ensuring availability through various partners, including global cryptocurrency exchanges. He added that the market is becoming more attractive not only for users but also for companies wishing to adopt the stablecoin ecosystem. One of the biggest catalysts is clarity on regulations: We are in the midst of a rapid transformation. Although all transformations take time, the progress made has been significant. The only major barrier is uncertainty about regulation. But that changed last year with the advent of MiCA, paving the way for rapid growth. Combay also stated that fully implemented payment solutions using stablecoin can reduce costs and transaction fees by 90 to 92%, and even more. Why Does Trump Want to Have a Law on stablecoin? According to Delphi Digital, over $120 billion of US gambling bonds are currently supporting stablecoins. The adoption by institutions is on the rise. Tether (USDT) and Circle (USDC) still dominate the market, but new players are entering with fresh ideas. For example, the stablecoin Ethena (ENA) has created a niche market with a program focused on its own profit.

One of the key developments is the proposed GENIUS Act, or the National Innovation Guidance and Establishment Act for the US Stablecoin. The Senate passed the bill on June 17 and it is now being sent to the House of Representatives. If passed, GENIUS could become one of the most important laws regulating stablecoin, turning the United States into a global center for the ecosystem. Scott Bessent, Secretary of Finance and a supporter of the bill, stated that it could help reduce national debt.

However, there is still debate about whether it can have the opposite effect. stablecoin may increase demand for coin, meaning issuing more debt. This bill will require issuers to back their tokens with US Treasury bonds, similar to what Tether and Circle have done. When fully deployed, GENIUS can enhance stablecoins pegged to the USD. Issuers may need to adjust their framework or issue tokens specifically for the United States to comply. There are rumors that Donald Trump wants to see the law completed by August. Even if GENIUS does not directly reduce national debt, it will still open the door to more market participants and new types of stablecoin partnerships. 'Seamless Integration' of stablecoin The stablecoin market is not only developing among local cryptocurrency users. It also attracts attention from the US Treasury, tech giants, and traditional banks. Does this mean stablecoin will replace the banking system? According to Frank Combay, it's not necessarily like that: While stablecoin remains an option, we expect banks to actively adopt them to maintain competitiveness. Card enthusiasts can continue to use them while benefiting from faster transactions and lower fees. Importantly, stablecoin poses no threat to CBDCs, as central bank digital currencies serve as a sovereign-backed alternative to physical cash. Instead of seeing this change as 'disruption' or 'coexistence', we prefer the term 'seamless integration'. This opportunity is not limited to tokens supported by USD. There is increasing momentum around stablecoins pegged to the euro, especially following the implementation of the Markets in Crypto-Assets Regulation (MiCA). Combay sees this as the next big opportunity: With a market capitalization of over $230 billion, we are witnessing global companies launching new types of stablecoins at an unprecedented pace. And this is just the beginning. While stablecoins pegged to the US dollar have proven their potential, those pegged to the euro are still in the early adoption phase, representing the largest growth opportunity, with over 99% of market potential untapped. Stablecoin is gradually becoming a real alternative in the payment field. With lower fees, faster transactions, and increasing regulatory clarity, they are no longer just a segment of the cryptocurrency market. As Frank Combay said: The adoption of digital assets, including stablecoin, has increased exponentially. This is an irreversible change in modern finance. This change will not happen overnight, and traditional players such as banks and card networks will not disappear. But stablecoin is being valued by both original cryptocurrency projects and traditional organizations. The idea of 'seamless integration' may be exactly how it unfolds.