Tens of billions in stablecoin transactions ‘inorganic,’ Visa says

Main Points Related to Visa’s Study on Stablecoin Transactions:

Visa challenges the assumption that stablecoin turnover is reaching traditional payment network levels.

Visa’s Concerns about Stablecoin Transactions:

Visa’s head of crypto, Cuy Sheffield, suggests that a significant portion of stablecoin transactions are influenced by automated bot activities, leading to “a lot of noise” in the data.

Visa’s Methodology for Analyzing Stablecoin Transactions:

Visa focuses on the largest stablecoin amounts transferred in a single transaction and uses an “inorganic user filter” to exclude transactions from accounts engaging in fewer than 1,000 transactions and $10 million in volume, aiming to eliminate bot and automatic activity.

Industry Perspectives on Visa’s Findings:

While Visa’s findings are questioned by some in the cryptocurrency market, there is acknowledgment that stablecoins are still in a nascent stage as a payment instrument, with a need to enhance existing infrastructure for better functionality.

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