The Future of Payments Transformed by Stablecoins: From Coexistence to Integration

Introduction Fiat-pegged stablecoins are revolutionizing payments due to their low price volatility. This paper analyzes their impact on payment systems and daily life.

Problems with Traditional Payments Traditional international remittances are slow and costly (3-10% fees) due to multiple intermediaries. Credit card fees also burden consumers.

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Impact on Us and Challenges Consumers and businesses benefit from lower costs, faster 24/7 payments, and improved cash flow. Key challenges include technological scalability, security, and international regulatory harmonization.
Conclusion Stablecoins represent "complementary innovation," embraced by payment giants to create more efficient systems. Adoption is accelerating, especially in emerging markets and international trade. A gradual shift towards a diverse, more equitable financial system is underway, requiring understanding and adaptation.

Regulatory Environment and Challenges U.S. regulations like the "Stablecoin Trust Act" enhance reliability by mandating reserves and audits, but balancing privacy with anti-money laundering (AML) remains an ongoing challenge.
Future Outlook: Hybrid Ecosystem Stablecoins will integrate into a hybrid ecosystem, with major players like Visa and Mastercard driving adoption. By 2026, expect wider payment network support, new "digital dollar economies," and expanded B2B use, potentially outpacing CBDCs in specific areas.

Stablecoin Solutions Stablecoins enable faster, cheaper (0.5-1.5% fees) remittances via blockchain, as seen in Visa's 70% cost-saving pilot. Blockchain transaction costs are minimal.
Strategies of Major Payment Companies Visa now supports dual fiat/USDC settlement, while Mastercard enables cross-chain stablecoin transfers, enhancing convenience.
Emerging Markets and Trade Finance Stablecoins serve as value stores in high-inflation nations and drastically cut trade finance settlement times (e.g., from 14 days to 2 hours in Southeast Asia).