Important points
Stablecoins reduce costs and settlement times in global transactions. The “stablecoin sandwich” model has been used effectively for remittances between the United States and Mexico.
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Visa and PayPal executives made the case for widespread adoption of stablecoins during a panel discussion at the DC FinTech Week Forum earlier today.
Cuy Sheffield, Head of Crypto at Visa, and Jose Fernandez da Ponte, CEO of PayPal Digital, explore the transformative potential of stablecoins in streamlining cross-border transactions and reshaping global payments. I emphasized.
The conversation centered on how stablecoins, once used primarily for cryptocurrency transactions, are now becoming essential tools for streamlining international business-to-business (B2B) and peer-to-peer (P2P) payments. That’s it.
Stablecoins can significantly reduce settlement times, enable 24/7 transactions, and minimize costs associated with traditional cross-border payment methods such as SWIFT transfers.
Fernández da Ponte said stablecoins are helping companies move funds across borders more quickly and efficiently, allowing for faster repatriation of profits and better exchange rates. emphasized.
He noted that CFOs are beginning to adopt stablecoins as they recognize the benefits of instant payments and reduced counterparty risk.
In discussing the evolving applications of stablecoins, Sheffield introduced the concept of a “stablecoin sandwich,” where fiat currency is used at both ends of a transaction and a stablecoin facilitates transfers in the middle. .
This model has already proven effective for companies moving funds from the US to Mexico, where stablecoins are converted into pesos through local exchanges.
Anna Yuan, founder of stablecoin infrastructure provider Perena, explains how high-performance blockchains like Solana are used to support these transactions, enabling near-instantaneous transfers. He also talked about
He explained that the fast block times make Solana ideal for processing stablecoin transactions, while also highlighting the challenges of cross-chain interoperability between slower networks.
Both Visa and PayPal executives emphasized that stablecoins are no longer just a tool for crypto traders, but are rapidly becoming the basis of modern global payment systems. They expect this technology to be increasingly adopted by both businesses and consumers.
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