Visa and PayPal executives call for stablecoins to simplify global payments

Odaily Planet Daily Report: In a panel discussion at the Washington Fintech Week forum, executives from Visa and PayPal advocated for wider adoption of stablecoins. Cuy Sheffield, Visa's head of crypto, and Jose Fernandez da Ponte, CEO of PayPal Digital, emphasized the transformative potential of stablecoins in simplifying cross-border transactions and reshaping global payments. The discussion focused on how stablecoins, which were once primarily used for cryptocurrency trading, are now becoming an important tool for streamlining business-to-business (B2B) and peer-to-peer (P2P) payments. Fernandez da Ponte highlighted that stablecoins are helping businesses transfer funds across borders more quickly and efficiently, enabling faster repatriation of profits and better foreign exchange rates. He noted that chief financial officers are starting to adopt stablecoins, as they recognize the benefits of instant settlement and reduced counterparty risk. When discussing the evolving applications of stablecoins, Sheffield introduced the concept of the "stablecoin sandwich," where the two ends of a transaction use fiat currency, with stablecoins facilitating the transfer in the middle. This model has proven effective for businesses moving funds from the US to Mexico, where stablecoins are exchanged for pesos through local exchanges. Overall, the Visa and PayPal executives emphasized that stablecoins are no longer just tools for cryptocurrency traders, but are rapidly becoming the foundation of the modern global payment system. They anticipate that this technology will see increasing adoption by both businesses and consumers.