Stablecoin Transactions Dominated by Bots, Visa Research Shows
The Rise of Bots in Stablecoin Transactions: A Closer Look
Stablecoins have been gaining momentum in the world of cryptocurrency, offering a stable value by pegging their worth to fiat currencies or assets like gold. However, recent research from Visa and Allium Labs has revealed a startling trend – bots account for the vast majority of stablecoin transactions.
According to the data, fewer than 10% of these transactions are from genuine users, indicating that only $149 billion out of $2.2 trillion in total transactions last month came from “organic payments activity.” This finding raises questions about the true nature of stablecoin transactions and their use in the digital payments ecosystem.
Pranav Sood, executive general manager for Europe, the Middle East, and Africa at Airwallex, commented on the findings, noting that stablecoins are still in a nascent stage as a payment instrument. While they have long-term potential, there are significant hurdles to overcome in terms of user-friendliness and adoption.
The report highlights the need for existing payment rails to work better and improve the user experience for stablecoin-based transactions. Sood points out that there is still significant reliance on traditional payment methods like checks in the US, indicating a slow adoption of new technologies in the payments space.
Despite these challenges, stablecoins offer a level of stability that traditional cryptocurrencies lack, making them attractive for businesses looking to streamline cross-border transactions and manage liquidity more efficiently. Recent initiatives from companies like Stripe, PayPal, and Ripple aim to boost the use of stablecoins in international transactions, signaling a growing interest in this emerging payment method.
As the debate around stablecoin transactions continues, it is clear that the role of bots in these transactions raises important questions about the future of digital payments. With further research and innovation, the potential for stablecoins to revolutionize the payments landscape remains strong. Stay tuned for more updates on this evolving trend in the world of cryptocurrency.
