Stablecoin Adoption Falls Short of Everyday Practicality, Payoneer CEO Warns

Payoneer's CEO John Caplan believes that stablecoins have not yet done the difficult part of their job, which is to be easily usable in everyday transactions. He argues that while stablecoin adoption has accelerated, it still requires more effort to make them a practical tool for cross-border payments.

Caplan points out that having a stablecoin does not necessarily mean people can use it to buy everyday goods and services. For example, he notes that you cannot use USDC to buy orange juice in Pakistan or checkout at a supermarket with a stablecoin balance.

Payoneer's CEO also emphasizes the importance of trust in cross-border payments. He believes that customers value certainty and trust over low prices when it comes to making transactions across borders. Caplan notes that his company earns interest on billions of dollars of customer funds, which is a significant share of its revenue.

Payoneer has applied for a national trust bank charter that would allow it to issue its own token, joining a queue of banks and fintechs planning the same thing. Caplan sees this as a building block, not the finish, and believes that the demand he sees now is not the trade that threatens him.