The crypto threat to dethrone Visa!

Stablecoins now seem to be holding their own against competitors in the cross-border transfer arena. According to on-chain data, transactions made with these dollar-backed cryptos reached nearly $2.2 trillion over the past 30 days in April. Based on these figures, some experts predict that the volume of stablecoin transactions could surpass that of Visa during the quarter. Shocked by the claim, the firm has responded and refocused the debate.

More than $2.2 trillion in transactions in April thanks to dollar-backed cryptos

The popularity of stablecoins in the cross-border transfer sector is increasingly weighing on a market long dominated by powerful players like Visa, Mastercard, and PayPal. This month, stablecoin transactions have hit the $2.2 trillion mark, much to the delight of crypto enthusiasts.

Among them, Jan-Erik Asplund, co-founder of research firm Sacra, has made a prediction for dollar-backed cryptocurrencies. In a recent article, the expert claims that the total volume of stablecoin payments could exceed that of Visa, reaching $4 trillion during this quarter.

Jan-Erik Asplund has also pointed out that stablecoins are extremely suited to cross-border transfers and are increasingly integrated into the financial landscape. He emphasizes that cross-border stablecoin transfers take only a few minutes, unlike competitors like Visa.

Asplund also notes that these services are available on business days as well as non-business days, and at much lower costs. Furthermore, Jan-Erik Asplund indicates that all major banks have incorporated stablecoins into their payment infrastructures to increase transaction efficiency.

As one might expect, Visa, which does not intend to endorse this laudatory narrative about dollar-backed cryptocurrencies, has countered with some interesting clarifications.

LESS THAN 10% OF STABLECOIN TRANSACTIONS GENUINE: VISA AND ALLIUM LABS DATA

– A study conducted by Visa and Allium Labs suggests less than 10% of stablecoin transactions originate from genuine users.

– Visa and Allium Labs' dashboard strips out transactions initiated by bots… pic.twitter.com/5Vy9uFSce5

— BSCN (@BSCNews) May 6, 2024

Visa’s Response to Claims in Favor of Dollar-Backed Cryptos

Challenged by Sacra’s predictions, Visa has published a dashboard that challenges the theory of the imminent superiority of stablecoins. It reveals that only $149 billion, or less than 10% of stablecoin transactions in April, were made by humans. The remaining 90% were supposedly carried out by bots and not by real users.

According to Cuy Sheffield, Head of Crypto at Visa, transactions in stablecoins made by bots are not “acceptable”. The company now intends to collaborate with Allium Labs to eliminate any potential distortions that may creep into measurements of transactions made with dollar-backed cryptos.