Future Development of Stablecoins: Visa's Insights and Layout

Recently, the U.S. Senate passed the GENIUS Act, marking a clearer regulatory landscape for stablecoins. A Visa executive shared their views on the development of stablecoins.

As a traditional payment giant, Visa's attitude towards stablecoins is of significant reference value. Here are Visa's main viewpoints and industry development trends:

Three Key Aspects of Stablecoin Development

1. Technical Layer: A strong and reliable infrastructure is needed to support large-scale high-speed transactions. Blockchain technology provides a solution for this.

2. Reserve Layer: Establish trust in the value of stablecoins. Regulated reserve-backed stablecoins can address this issue.

3. Interface layer: Build a user-friendly interface that is ubiquitous, enabling convenient usage and value exchange. This is currently the biggest challenge.

Positioning and Advantages of Visa

Visa believes it has built the world's largest and most reliable payment network, which can provide for stablecoins:

• A global network of users and merchants
• Mature payment infrastructure and services
• Simple and convenient user experience
• High security and trust

By integrating Visa's capabilities, stablecoins can achieve large-scale applications and solve the "last mile" problem.

Main Application Scenarios of Stablecoins

1. The cryptocurrency trading market has achieved good matching.

2. Demand for US dollars among emerging market users

3. Cross-border payments, such as personal remittances, corporate payments, etc.

4. Commodity Trade Settlement ( Future Potential )

Visa believes these scenarios provide new business growth opportunities.

Industry Development Trends

1. Traditional payment giants are actively laying out the stablecoin infrastructure.

2. Stablecoin issuers collaborate with financial institutions to build a payment network.

3. E-commerce platforms consider issuing their own stablecoin to reduce payment costs.

4. The main application scenarios for stablecoins are in emerging markets outside of the United States.

5. Regulations are gradually becoming clearer, creating conditions for further application.

Overall, stablecoins are still in the early stages, but they have shown great potential. Whether stablecoins can become a mainstream payment method in the future will require more time for verification and exploration.