Visa’s Head of Crypto Cuy Sheffield predicts that stablecoins primarily based on non-dollar fiat currencies will see important development within the coming years.
Talking on the Solana Breakpoint occasion in Singapore, Sheffield famous that whereas USD stablecoins dominate the market, different fiat currencies have a job to play in the way forward for cross-border funds.
“The greenback is nice for cross-border, however you then want to have the ability to convert shortly and effectively,” Sheffield mentioned, including: “Different native forex stablecoins have a giant position to play on this.”
At the moment, USD-based stablecoins like USDT and USDC make up 99% of the stablecoin market, however Sheffield envisions a future the place all main fiat currencies will likely be represented on-chain.
Sheffield additionally mentioned that the range of stablecoin choices is growing, with many trying to distinguish themselves from the dominant USD choices. He famous that whereas most customers are actually acquainted with stablecoins and perceive their goal, there are different use instances the place the model behind the stablecoin might not be as essential because the economics behind it.
The stablecoin market has seen new entrants this yr, similar to PayPal’s PYUSD and BitGo’s USDS, each of which are attempting to achieve a foothold amongst established firms. The latter, for instance, goals to draw establishments by providing monetary incentives to supply liquidity, whereas London-based fintech agency Revolut has additionally introduced plans to launch its personal stablecoin.
Sheffield described 2024 as a “watershed” yr for stablecoins as non-crypto companies more and more use them to unravel the fee challenges of offshore freelancers. Many freelancers in nations like Nigeria and Argentina want to be paid in {dollars}, making stablecoins a sensible resolution for worldwide funds.
*This isn’t funding recommendation.