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Despite the hype, stablecoins are still a long way from becoming a popular means of everyday payment. This is the opinion of Jorn Lambert, Mastercard’s product director.
Stablecoins are a type of digital asset whose value is pegged to another stable asset, most commonly the US dollar, usually at a 1:1 ratio. Stablecoins aim to combine the advantages of cryptocurrency technology (such as fast transaction speeds and low costs) with the stability of traditional fiat currencies, thereby overcoming the volatility associated with other cryptocurrencies.
In a discussion with analysts on July 14, Lambert explained that while the underlying technology of stablecoins holds great potential, including high speed, 24/7 operation, low cost, programmability, and immutability, these attributes alone are not enough to make stablecoins a viable payment instrument.
He emphasized that other factors, such as a seamless and predictable user experience, as well as broad reach and distribution to consumers, are equally, if not more, important.
Lambert pointed out that currently, about 90% of stablecoin transaction volume is associated with crypto trading activities, as investors use stablecoins to buy and sell digital assets.
Although companies like Shopify Inc. and Coinbase Global Inc. have taken steps to integrate stablecoins into everyday consumer payments, Lambert believes that overcoming barriers such as user acceptance and increased complexity in the online payment process will be challenging in the short term.
Stablecoins were once promoted as a way to bypass card networks by enabling direct payments from consumers to merchants, thereby avoiding card-related fees.
However, card networks are reshaping this narrative by positioning themselves as partners that can enhance the adoption of stablecoins by integrating them into their networks.
Discussions around stablecoins have intensified as regulatory developments regarding stablecoins are progressing in the US. The emerging clarity on the legal framework has attracted new entrants to the stablecoin space and encouraged financial institutions to consider their stance in this evolving industry.
In addition to financial institutions, governments, and central banks worldwide are exploring ways to foster innovation in their domestic ecosystems to counter the dollarization of their economies. Lambert concluded that this diversity will increase over time.
By Khánh Ly
– 12:52 15/07/2025
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