Stablecoins are killing payment systems

[zasad@]

https://www.circle.com/executiveinsights/latam-fintech-companies-embrace-digital-finance
"Stablecoins and tokenized data on open blockchains are unleashing a new wave of global commerce, making it significantly easier for people and businesses to move, store and own value locally and around the world.
Last year(2022), global stablecoin settlement exceeded $7 trillion compared to $14 trillion settled at Visa and Mastercard.
Around the world, 1.7 billion people are underbanked, yet two-thirds of these people own a smartphone.4 Much as the original internet democratized access to information, public blockchains can turn these internet connected devices into compliant endpoints for both traditional finance and innovative new financial services that are completely disrupting traditional process and bureaucracy. "

At this rate, in 5 years the whole world will be using stablecoins instead of payment systems.

[bitmover]

At this rate, in 5 years the whole world will be using stablecoins instead of payment systems.

I think stable coins are amazing for people who live in developing countries, where fiat is much worse than usd or euro.

as you mentioned they are making "significantly easier for people and businesses to move, store and own " usd around the world.

However, I don't see their adoption growing that fast in the past years. Credit cards are still the number one option for me when paying something with fiat currencies.

[www.Gambler.Casino]

No wonder. Stablecoins are very convenient to use in almost any country!

[dansus021]

To be honest, stablecoin is very easy to use and has cheap fees if you pay one person to another person "worldwide" it only costs you a network gas fee, and I always said maybe the adoption of crypto can start from accepting stablecoin in some merchant.

But what I am scared about stablecoin is a lot including de-pegged, the crazy amount of money that they mint, and the conspiracy theory too. 

But yeah I think this become one positive news.

[joniboini]

When people say payment systems, what comes to my mind is a service like BTCpayserver or something similar. If that's what is referred to here, I'd argue that they will likely adopt and accept stablecoin as a form of payment. I doubt businesses would ditch payment systems and build their own payment processor just because stablecoin makes it easier for customers to ditch cash.

In my area, digital payment has definitely become the norm, although it brings another form of inconvenience when the infrastructure doesn't fully support them. Slow internet access, poor back-end code that makes payment fail to be processed, etc. It will definitely get ironed out if stablecoin or a similar form of payment becomes popular.

[Poker Player]

You have to see who wrote this article: a stablecoin company. In other words, it can be biased but it's well documented.

It is surprising and hard to believe that:

According to Mastercard, 51% of Latin American consumers have made a purchase with digital currency and one-third have used a stablecoin for everyday purchases.

Because that would be over 200's of millions of people having paid for day to day things with stablecoin. Is there that much adoption in Latin America? This would mean that at least 20% of businesses have the option to pay with stablecoins and I find it hard to believe.

However, I don't see their adoption growing that fast in the past years. Credit cards are still the number one option for me when paying something with fiat currencies.

You live in Brazil, don't you? Do you believe the quote I posted, which is based on a Mastercard study?

[Despairo]

I never doubt we will forced to use stablecoins aka CBDC, but my question is, how can they use stablecoins as a payment options? AFAIK there's no country yet legalized stablecoins as legal tender, isn't illegal to use stablecoins directly as a currency?

I think stable coins are amazing for people who live in developing countries, where fiat is much worse than usd or euro.

But we can own foreign currency using local banks, the difference is the way to obtain it. Using local banks need to follow their complicated rules, while in cryptocurrency we can just buy it directly through exchange.

[zasad@]

At this rate, in 5 years the whole world will be using stablecoins instead of payment systems.

I think stable coins are amazing for people who live in developing countries, where fiat is much worse than usd or euro.

as you mentioned they are making "significantly easier for people and businesses to move, store and own " usd around the world.

However, I don't see their adoption growing that fast in the past years. Credit cards are still the number one option for me when paying something with fiat currencies.

A bank card is more convenient than cryptocurrencies, but banks are unreliable and many banks charge a percentage for storing assets. If you lock TRON for 400 dollars, you can get a good number of free transactions in this ecosystem or enjoy cheap commissions in Polygon. Once stablecoin transactions become nearly free, banks will no longer be needed for cross-border settlements.

[bitmover]

Once stablecoin transactions become nearly free, banks will no longer be needed for cross-border settlements.

Even bitcoin is good for that. Fees aren't usually as high as they are now, and with 0.5 - 2 usd we are able to transfer thousands of dollars to another country within minutes. Way better than the banking system

According to Mastercard, 51% of Latin American consumers have made a purchase with digital currency and one-third have used a stablecoin for everyday purchases.

However, I don't see their adoption growing that fast in the past years. Credit cards are still the number one option for me when paying something with fiat currencies.

You live in Brazil, don't you? Do you believe the quote I posted, which is based on a Mastercard study?

I don't think this is true.

I have seen studies saying that 30% of Brazilians have ever bought a crypto asset. This is not the same as buying in an exchange, because some of bankings offering bitcoin/ethereum for sale. But you can't withdrawal.

like this one https://exame.com/future-of-money/mais-de-30-dos-brasileiros-ja-utilizam-criptomoedas-diz-pesquisa-da-visa/

I think we may have too many fake accounts in local exchanges, which may be inflating this number. Even 30% may be too much..

[buwaytress]

At this rate, in 5 years the whole world will be using stablecoins instead of payment systems.

Nice utopia to dream of, but that feels like an overestimation of a willingness to use something outside of a recognised state-compliant and state-oversight system. It's almost 2024 and I still have to convince colleagues more technologically-dependent and savvy than myself to switch or even consider conventional crypto (Bitcoin) that is secure and free of central influence. Stablecoins, in the crypto sense, still have a lot of ground to cover when they are, still centralised corporate entities without state assurances or oversight.

[cabron]

At this rate, in 5 years the whole world will be using stablecoins instead of payment systems.

Nice utopia to dream of, but that feels like an overestimation of a willingness to use something outside of a recognised state-compliant and state-oversight system. It's almost 2024 and I still have to convince colleagues more technologically-dependent and savvy than myself to switch or even consider conventional crypto (Bitcoin) that is secure and free of central influence. Stablecoins, in the crypto sense, still have a lot of ground to cover when they are, still centralised corporate entities without state assurances or oversight.

I actually think what zasad is saying can happen. They may not say it but the stablecoin could be the real CBDC, we are not yet aware of it but since this is supported by the government and I mean they can freeze it right?

And then the USDC seems to be catching up with the USDT which USDC is governed by a popular organization that you could link to the government. The stablecoins are the preferred payment even the ecommerce sites today are accepting stablecoins and PayPal is out.

[avikz]

https://www.circle.com/executiveinsights/latam-fintech-companies-embrace-digital-finance
"Stablecoins and tokenized data on open blockchains are unleashing a new wave of global commerce, making it significantly easier for people and businesses to move, store and own value locally and around the world.
Last year(2022), global stablecoin settlement exceeded $7 trillion compared to $14 trillion settled at Visa and Mastercard.
Around the world, 1.7 billion people are underbanked, yet two-thirds of these people own a smartphone.4 Much as the original internet democratized access to information, public blockchains can turn these internet connected devices into compliant endpoints for both traditional finance and innovative new financial services that are completely disrupting traditional process and bureaucracy. "

At this rate, in 5 years the whole world will be using stablecoins instead of payment systems.

Stablecoins are good but not the best! However it comes with its own benefits and a lot of people who are actively trying to avoid banking rout for borderless payments, are adopting cryptocurrencies, and more specifically stable coins. But when the question comes whether the stable coins can eradicate the need of banking or not, I think differently than many other fellow members.

Banking system has a very strong foundation within the society. The usage of banking is more psychological than anything else. Otherwise when we already have a robust system available why people are not using it? Banking can never be eradicated. But we will see a growth in cryptocurrency payment settlements. Both will coexist.

[zasad@]

Once stablecoin transactions become nearly free, banks will no longer be needed for cross-border settlements.

Even bitcoin is good for that. Fees aren't usually as high as they are now, and with 0.5 - 2 usd we are able to transfer thousands of dollars to another country within minutes. Way better than the banking system

Bitcoin is slow. Personally, I find it easier to use free transactions in the TRON ecosystem, which are confirmed in a few seconds, than to wait for confirmation in the Bitcoin ecosystem. Even these simple statistics tell us a lot.
https://bitcointalk.org/index.php?topic=5476059.msg63252004#msg63252004

At this rate, in 5 years the whole world will be using stablecoins instead of payment systems.

Nice utopia to dream of, but that feels like an overestimation of a willingness to use something outside of a recognised state-compliant and state-oversight system. It's almost 2024 and I still have to convince colleagues more technologically-dependent and savvy than myself to switch or even consider conventional crypto (Bitcoin) that is secure and free of central influence. Stablecoins, in the crypto sense, still have a lot of ground to cover when they are, still centralised corporate entities without state assurances or oversight.

Bitcoin is good for hodling large amounts of money, and for transferring 10-1000 dollars, the centralized stablecoin USDT is usually used. I offer DAI to some people, but people think it’s a scam    There are a lot of people in the world who don't want to study.
They don’t want to know anything except USDT.

[bitmover]

Bitcoin is slow. Personally, I find it easier to use free transactions in the TRON ecosystem, which are confirmed in a few seconds, than to wait for confirmation in the Bitcoin ecosystem. Even these simple statistics tell us a lot.

That's the cost of decentralization

10 minutes isn't a lot if you are worried about decentralization and freedom. A swift can take many business days,  for example.

Otherwise,  you can just use visa. Most cards will even give you 1% cashback for every transaction you make, and they are instantaneous. 

Bitcoin's goal is not speed or low cost, but freedom.

[hugeblack]

By stableCOINs, do you mean USDT USDC? I didn't think it was so common outside trading channels? StableCoins will not have a future because with increasing regulatory pressures, I expect that if governments decide to accept Bitcoin, they will have to create a stable dollar system, and then you must conduct identity verification before transferring Bitcoin to that stable currency, which will inevitably not be USDT USDC, but rather something controlled directly by the Fed instead. It is one of the companies that rely on treasury bonds and bank accounts to provide sufficient liquidity to maintain the peg price of $1.

[zasad@]

Bitcoin is slow. Personally, I find it easier to use free transactions in the TRON ecosystem, which are confirmed in a few seconds, than to wait for confirmation in the Bitcoin ecosystem. Even these simple statistics tell us a lot.

That's the cost of decentralization

10 minutes isn't a lot if you are worried about decentralization and freedom. A swift can take many business days,  for example.

Otherwise,  you can just use visa. Most cards will even give you 1% cashback for every transaction you make, and they are instantaneous. 

Bitcoin's goal is not speed or low cost, but freedom.

The Bitcoin network also has problems with transaction costs. When Bitcoin was at 44,000 a few days ago, I paid 10-20 dollars per transaction and waited 30 minutes or more.
Decentralization is not always needed for a $300 payment. But the visa payment system is not currently available in all services, and USDT does not depend on sanctions.

[joniboini]

The Bitcoin network also has problems with transaction costs. When Bitcoin was at 44,000 a few days ago, I paid 10-20 dollars per transaction and waited 30 minutes or more.
Decentralization is not always needed for a $300 payment. But the visa payment system is not currently available in all services, and USDT does not depend on sanctions.

Bitcoin price is not the biggest factor for transaction fees IIRC. I remember paying the same fee when we were at the peak of the '17 (or '21?) bullrun when BTC did not even touch $25k yet. Basically, iff the network is busy then you'll likely need to pay more. You're right that people who pay $300 for some services probably do not need decentralization, but at the same time, they don't have to use Bitcoin for that either. Choosing Bitcoin means you care about security and want to use something in which its supply is not controlled by a group of people, but can be verified and relatively fast at the same time. CMIIW.

[bbc.reporter]

At this rate, in 5 years the whole world will be using stablecoins instead of payment systems.

I think stable coins are amazing for people who live in developing countries, where fiat is much worse than usd or euro.

as you mentioned they are making "significantly easier for people and businesses to move, store and own " usd around the world.

However, I don't see their adoption growing that fast in the past years. Credit cards are still the number one option for me when paying something with fiat currencies.

After the ban on cryptospace exchanges, miners and payment processors in China, there were rumors that stablecoins were the preferred way to get underground inflows and outflows in and out of the cryptospace. Chinese citizens would go near the borders of Hong Kong and buy stablecoins held in hardware wallets with Yuan at high prices.

Also, it should not be a shock if America secretly is supporting US dollar stablecoins because it dollarizes the cryptospace and developing countries more easily.

[Nheer]

I think stable coins are amazing for people who live in developing countries, where fiat is much worse than usd or euro.

as you mentioned they are making "significantly easier for people and businesses to move, store and own " usd around the world.

However, I don't see their adoption growing that fast in the past years. Credit cards are still the number one option for me when paying something with fiat currencies.

Holding Stable coins is really amazing in developing countries where where majority can’t stand volatility of the crypto market, and it’s an easier means of owning dollars so they prefer to hold Stable coins as they wouldn’t have to worry about their assets losing value over a short period of time.

Holding stable coins is easier for people to store value especially for business purposes and it easier for people to understand it. Holding bitcoin is more profitable and that’s why stable coins adoption is far behind in the past years

[zasad@]

Bitcoin is slow. Personally, I find it easier to use free transactions in the TRON ecosystem, which are confirmed in a few seconds, than to wait for confirmation in the Bitcoin ecosystem. Even these simple statistics tell us a lot.

That's the cost of decentralization

10 minutes isn't a lot if you are worried about decentralization and freedom. A swift can take many business days,  for example.

Otherwise,  you can just use visa. Most cards will even give you 1% cashback for every transaction you make, and they are instantaneous.  

Bitcoin's goal is not speed or low cost, but freedom.

Yes, I myself always say that you have to pay for freedom, but not everyone is ready to pay that much for freedom. Sometimes it's easier to use a centralized stablecoin

https://mempool.space/tv

The Bitcoin network also has problems with transaction costs. When Bitcoin was at 44,000 a few days ago, I paid 10-20 dollars per transaction and waited 30 minutes or more.
Decentralization is not always needed for a $300 payment. But the visa payment system is not currently available in all services, and USDT does not depend on sanctions.

Bitcoin price is not the biggest factor for transaction fees IIRC. I remember paying the same fee when we were at the peak of the '17 (or '21?) bullrun when BTC did not even touch $25k yet. Basically, iff the network is busy then you'll likely need to pay more. You're right that people who pay $300 for some services probably do not need decentralization, but at the same time, they don't have to use Bitcoin for that either. Choosing Bitcoin means you care about security and want to use something in which its supply is not controlled by a group of people, but can be verified and relatively fast at the same time. CMIIW.

I have been criticized many times for my words, but I do not consider Bitcoin a safe asset in terms of price stability. I believe that its price has been manipulated for many years, and when the manipulators get tired of it, they will sell it and invest in more modern projects.