A decade ago, stablecoins emerged as a niche solution for crypto traders looking to escape volatility without leaving the blockchain.
Today, they’ve grown into a multi-trillion-dollar settlement layer – and some observers believe their next frontier could be the credit card industry itself.
The appeal is straightforward: stablecoin transfers are nearly instant and cost a fraction of what traditional cards charge. Merchants currently hand over more than $100 billion each year in swipe fees, with rates climbing as high as 3.5% per transaction. For retailers working on slim margins, shifting even a portion of that flow to blockchain rails could prove transformative.
Beyond cost savings, the user experience is also different. Stablecoin transactions don’t come with interest charges or annual fees, and settlement times are measured in seconds, not business days.
These advantages explain why Visa and Mastercard have both begun pilot programs in the digital asset space – a defensive move as blockchain alternatives gain ground.
But adoption won’t be automatic. Credit cards benefit from decades of legal protection and consumer trust. By contrast, stablecoin frameworks remain patchy, though the recent passage of the U.S. GENIUS Act marked a step toward clearer oversight. Until protections catch up, many users may be reluctant to treat stablecoins as a full substitute for their plastic.
Even so, momentum is building. Banks, fintechs, and payment providers are already experimenting with stablecoin rails. If regulatory clarity improves, the combination of speed, efficiency, and lower costs could erode the dominance of legacy networks and put blockchain at the center of everyday commerce.
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Source: https://coindoo.com/why-stablecoins-could-rewrite-the-future-of-payments/