Industry leaders say safety features, not just speed, will determine stablecoins’ mainstream success
Stablecoins are often hailed as the future of payments, offering 24/7, near-instant cross-border settlement at a fraction of the cost of traditional transfers. But experts caution that without robust consumer protections, these digital tokens won’t unseat incumbents like Visa and Mastercard in the retail payments market.
Guillaume Poncin, chief technology officer of payment firm Alchemy, emphasized that while stablecoins excel in speed and efficiency, they still lack the fraud protection, chargebacks, and dispute resolution features consumers expect from credit card networks.
“Stablecoin projects must embed these protections if they want to reach the everyday person,” Poncin said. He suggested that insurance pools or smart contract–based safeguards could provide guarantees for users impacted by fraud or errors.
Hybrid future for payments
Poncin predicted that the industry will move toward hybrid models, combining blockchain’s instant settlement with the protections of traditional finance. “I expect every major payment processor will integrate stablecoins, and every bank will issue its own,” he said. “For cross-border payments and emerging markets, stablecoins are already winning. For domestic retail, protections will be the deciding factor.”
Stablecoins’ advantage in remittances and international commerce is clear. They allow cheaper and faster transactions compared to bank wires, making them attractive in emerging economies where fees remain high.
Traditional banking voices weigh in
The rise of stablecoins has already triggered policy debates. Earlier this year, U.S. lawmakers clashed over the GENIUS stablecoin bill, which prohibited issuers from sharing yield on government securities with customers. Some senators, like Kirsten Gillibrand, argued that such yield-sharing could undermine local bank lending. “If there is no reason to put your money in a local bank, who is going to give you a mortgage?” she warned.
Yet, others downplay the threat. JPMorgan CEO Jamie Dimon remarked that stablecoins and banks will coexist with separate customer bases, noting that demand for dollar-backed tokens is strong in regions with weaker financial systems.
For now, stablecoins dominate cross-border flows, but experts agree that consumer protections will be the key to unlocking mainstream adoption.
Disclaimer
This content is for informational purposes only and does not constitute financial, investment, or legal advice. Cryptocurrency trading involves risk and may result in financial loss.