Visa Exec Sees Growing Demand for Non-Dollar Stablecoins

Cuy Sheffield, Head of Crypto at Visa, spoke at the Solana Breakpoint event in Singapore, predicting a surge in demand for stablecoins pegged to non-US dollar currencies in the coming years.

Sheffield acknowledged the dominance of US dollar stablecoins, currently representing 99% of the market, but argued that while the dollar is ideal for cross-border transactions, fast and efficient local currency conversions are equally important. This creates a huge opportunity for stablecoins pegged to other local currencies.

He envisions a future where every major fiat currency has a blockchain representation, despite the current dominance of US dollar stablecoins. Sheffield welcomed the emergence of more stablecoins seeking to differentiate themselves from USDT or USDC, calling it an "exciting" trend. He pointed out that "It seems like there's a clear use case for stablecoins for most people. They understand what stablecoins are, and there are some consumer-facing brands. But we think there are many other use cases that might happen only on the back end, where the brand doesn't matter, it's really about the economics."

Sheffield highlighted 2024 as a turning point, with non-crypto companies beginning to experiment with stablecoins to address the challenges of paying overseas freelancers. He stated, "That's one of the biggest use cases we see over and over again, freelancers in Nigeria and Argentina wanting to be paid, they prefer to be paid in dollars."