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Stablecoins are already becoming mainstream digital tools used on a daily basis. Nowadays, it is used by both businesses and ordinary users to make payments.
In Singapore, for example, stablecoin payments reached $1 billion a few weeks ago, proving once again that stablecoins are becoming an important solution for enterprises. E-commerce is no exception.
This is not surprising, as stablecoins offer enormous benefits compared to traditional fiat payments and volatile cryptocurrencies.
So when you think of streamlined payment methods for businesses, stablecoins come to mind.
But how exactly can these be used in the e-commerce industry and why are they a better alternative to traditional payment methods? The question must be answered.
Current status of virtual currency in e-commerce
Despite the still uneven adoption of cryptocurrencies, significant progress has actually been made and their widespread use seems inevitable.
Data-driven look
Statistics such as a recent survey by Deloitte show that 64% of consumers are interested in using cryptocurrencies and stablecoins as a payment option.
VISA also reported that cryptocurrency payments processed through its cryptocurrency-backed cards reached $4.2 billion in the first quarter of 2023, indicating increased consumer demand. There is.
Indicators regarding the adoption of cryptocurrencies among younger generations are even more promising: 40% of people aged 18-35 plan to use cryptocurrencies, and 10% plan to use them regularly.
Additionally, 31% of them expect to make consistent cryptocurrency payments within the next 12 months.
When it comes to businesses, around 74% of retailers say they are considering accepting cryptocurrency payments within the next two years.
global momentum
Importantly, at the global level, new players such as China and Russia have already begun considering unified crypto regulation through the BRICS alliance.
Meanwhile, countries such as the United States, Canada, Australia, the European Union, Israel, and the Central African Republic remain in the lead.
Why stablecoins are perfect for e-commerce
As mentioned above, stablecoins have significant advantages, making them an attractive option for seamless e-commerce payments.
1. Low volatility
While the volatility of cryptocurrencies can be an advantage in some markets, it is not very practical for everyday use.
Stablecoins are tied to the value of fiat currencies such as the US dollar or the euro, which reduces volatility, which is a huge advantage and key factor for businesses.
This lack of volatility allows you to rely on stablecoins as a payment option, as you can secure profits without the risk of sudden changes in value.
2. Faster, cheaper transactions
Stablecoins were once primarily limited to “traditional” blockchains like Ethereum, but have now expanded to far beyond.
Blockchains like Polygon, Solana, Avalanche, Optimism, and Algorand already support stablecoins like USDT and USDC, making payments much faster and cost-effective.
Taking Solana as an example, its average transaction fees are 900x cheaper than Ethereum, costing 0.000014 SOL (or $0.00189) per transaction. It is also 900x cheaper than Polygon, which completes transactions in about 2 seconds per block with an average transaction cost of just $0.015.
3. A simple and stable entry point to digital payments
Many people may find using cryptocurrencies daunting because their nature is not fully understood.
However, thanks to their expansion into various blockchain networks, stablecoins can be easily integrated into payment systems, making them more accessible and practical for a wider range of businesses.
They are an important solution to many challenges associated with traditional payments, such as chargebacks, delays, and high transaction fees, making them highly beneficial for e-commerce.
4. Elimination of translation and exchange rate fluctuations
Perhaps the most important benefit for e-commerce businesses is the elimination of exchange rate and exchange rate fluctuations.
Stablecoins maintain consistent value, reducing the cost and uncertainty of currency conversion for businesses.
This feature is particularly attractive to companies with a global customer base, as it simplifies cross-border transactions.
What’s next for stablecoin adoption in e-commerce?
The regulatory framework for cryptocurrencies remains the biggest challenge to crypto adoption, but progress is accelerating nonetheless.
A growing number of countries are adapting their regulations to support the use of cryptocurrencies for both businesses and consumers.
This is especially true for stablecoins, especially USDC. USDC is now a fully regulated stablecoin, providing businesses with a secure and compliant option for their payment needs.
It is certainly true that digital assets are increasingly seen as the inevitable future, and examples like Singapore prove this point.
Along with this, we are already witnessing the emergence of new stablecoins, and in the future we can also expect the possibility of tying them to non-fiat assets.
conclusion
The future is digital, and cryptocurrencies such as stablecoins are an essential part of that future.
Stablecoins already offer a solution to the inefficiencies of traditional payment systems, and it is only a matter of time before they become widely adopted.
Stablecoins will continue to gain momentum as more e-commerce businesses seek fast, stable, secure, and cost-effective payment methods.
Vitaliy Shtyrkin is the Chief Product Officer at B2BinPay, an all-in-one crypto ecosystem for businesses. He is a product lead with 15 years of experience in financial markets, particularly in the fintech space, and is dedicated to strengthening digital asset management operations.
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