Stablecoins are set to revolutionize global payment systems by offering instant, 24/7 settlements and integrated compliance, according to Alumni Ventures' Ray Wu. Traditional cross-border payments, such as a $200 transfer from Miami to Mexico City, incur fees of 12-14 USD, or 6-7% of the transaction, costing U.S. businesses $172 billion in 2023. In contrast, companies like Visa, Mastercard, and Stripe are adopting stablecoins, with Stripe charging only 1.5% of traditional fees for stablecoin transactions.
Regulatory frameworks such as MiCA and the GENIUS Act are establishing reserve requirements and redemption protections, further facilitating stablecoin adoption. Indicators of this shift include a reduction in remittance fees from 6-7% to 3% and the introduction of 'Pay with USDC' options on checkout pages, signaling a significant move towards stablecoin integration in global payments.
Stablecoins Poised to Transform Global Payment Systems
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