As traditional fiat value transfer rulers, Visa's insights into stablecoins offer a roadmap for their mainstream adoption. The recent GENIUS Act passed by the U.S. Senate marks a pivotal step toward regulatory clarity. Here’s how Visa interprets this evolution—and what it means for the future of finance.
1. A "Potential" Watershed Moment in Payments
Jack Forestell (Visa):
The GENIUS Act represents a "potential" inflection point for digital currencies. While stablecoins unlock programmable money’s next era (the next age of digital programmable money), scaling requires overcoming three critical layers:
Three Pillars for Mainstream Adoption
Technology Layer:
- Requires robust, scalable blockchain infrastructure with zero tolerance for failures.
Reserve Layer:
- Trust in value stability via regulated, reserve-backed stablecoins (e.g., USDC, PYUSD).
Interface Layer:
- Must provide seamless conversions to fiat, ubiquitous access, and user trust.
💡 Without solving the Interface Layer, stablecoins may remain niche—used for wholesale markets but failing mainstream payments.
Visa’s Preparation:
- Partnered with BVNK (stablecoin infrastructure).
- Integrated Visa Direct for real-time settlements.
- Leveraged existing networks (140B+ digital tokens) for scalability.
👉 Why Visa’s Ecosystem Matters for Stablecoin Adoption
2. Visa’s Role: Bridging Scale and Trust
Key Challenges:
- Users still ask: "Will merchants accept my payment?" or "Which blockchain/Gas fee applies?"
- Solution: Visa’s stack eliminates friction by connecting stablecoins to its 48B+ credential network.
Stats:
- Since 2020: $950B crypto purchases + $250B crypto spend facilitated via Visa.
Web3 Insight:
- Even with infrastructure, scaling demands Visa’s ecosystem. Example: Walmart could bypass Visa to save $10B/yr in fees—but onboarding 400M+ users isn’t trivial.
3. Real-World Use Cases: Beyond Crypto Trading
Jack Forestell’s Focus:
- Emerging Markets: Dollar access for hyperinflation/currency-locked economies (60% of Tether’s growth).
- Cross-Border Flows: C2C remittances & B2B payments.
Visa’s Experiments:
- Stablecoin settlements.
- Cross-border solutions.
- Programmable money (e.g., smart contract-enabled payments).
Tether’s Edge:
- Dominates Global South (e.g., Nigeria, Philippines) where banking penetration is low.
- Targets 4.5B unbanked users—a $30B+ opportunity.
FAQ
Q1: Will stablecoins replace credit cards in the U.S.?
A: Unlikely soon—digital dollars already excel there. But emerging markets (e.g., Latin America) are prime adoption zones.
Q2: How does Visa profit from stablecoins?
A: By monetizing its rail network (e.g., Visa Direct) and serving as the Interface Layer for conversions.
Q3: What’s the biggest barrier to mass adoption?
A: Merchant acceptance. Solutions like Shopify’s crypto payments are critical.
👉 The Future of Stablecoins: Regulatory and Technological Hurdles
Stablecoins won’t revolutionize payments overnight—but with partners like Visa, they’re closer than ever.