Stablecoin Settlement About To Rival Visa

I think this is good news but I don't think it's apple and oranges yet because the major institutions aren't really using it. From my view, in order for it to be used in the normal economy it needs to go through a bank and those banks might get hit later. So it's definitely not as safe or regulated.

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Summary:

In this video, the speaker discusses the rise of stablecoins and their potential to surpass traditional credit card companies in transaction settlements. He mentions that stablecoins have settled over $7 trillion in 2022 and could reach over $8 trillion by the end of the year, potentially surpassing the settlement volumes of American Express and MasterCard combined. The speaker explores the challenges of regulatory acceptance, infrastructure, and adoption by commercial entities. He highlights the role of stablecoins in cryptocurrency trading and DeFi, emphasizing their potential in online transactions. Additionally, he mentions the growing importance of stablecoins in the total cryptocurrency market cap and predicts a significant increase in their value in the coming years.

Detailed Article:

The video delves into the topic of stablecoins and their increasing dominance in the realm of financial transactions, particularly in comparison to traditional credit card companies like Visa. The speaker references an article from Cointelegraph discussing how stablecoin settlements have already reached $7 trillion in 2022 and are projected to exceed $8 trillion by year-end. By surpassing the settlement volumes of American Express and MasterCard combined, there is a suggestion that stablecoins could potentially outpace Visa's annual $12 trillion settlements by 2023.

One of the key points made is the current lack of regulation surrounding stablecoins, which affects their widespread acceptance. The speaker acknowledges ongoing discussions in the United States Congress about stablecoin regulations, hinting at an inevitable regulatory framework for cryptocurrencies in the future. Despite the criticisms of comparing stablecoins to credit card companies due to different transaction types, the speaker argues that stablecoin usage poses a threat to traditional networks like Visa.

Infrastructure emerges as a significant hurdle to the broader adoption of stablecoins by retail and commercial entities. While individual merchants can navigate using wallets like Metamask, the complexity increases for larger corporations like General Motors or Walmart with multiple stakeholders and locations. The speaker points out the streamlined integration of stablecoins with online platforms and digital wallets, highlighting their potential in e-commerce transactions.

Moreover, the speaker predicts a shift towards stablecoin-dominated commercial activities, especially in online settings. Elon Musk's potential involvement in integrating stablecoins like HBD (Hive Blockchain Dollar) into Twitter as a payment system is mentioned. There is a strong emphasis on leveraging stablecoins for digital payments and the importance of building applications that facilitate their integration. Additionally, the speaker stresses the volatility of cryptocurrencies and the need for stablecoins to stabilize financial transactions.

In conclusion, the speaker foresees stablecoins playing an increasingly significant role in the total cryptocurrency market cap, potentially growing to tens of trillions in value in the next few years. This projection is based on the evolving use cases and the expanding adoption of stablecoins in various commercial activities. The video encourages viewers to remain attentive to the development and potential explosion of stablecoin values in the near future, marking them as a substantial force in the digital financial landscape.