Stablecoin Evolution: Not Revolution in Sight

The stablecoin industry is evolving, but it's not yet ready to revolutionize payments. According to Worldline and Coinbase, two major players in the field, stablecoins will likely coexist with traditional payment methods for at least the next 20 years.

Thibault Pelé from Worldline emphasized that settlement is just one aspect of the acquiring stack. While stablecoins can provide faster cross-border payments, they won't replace traditional rails entirely. Merchants see them as an alternative payment method, not a replacement for existing ones.

Océane Codjia from Coinbase presented a phased roadmap for merchant adoption. Phase one focuses on getting stablecoin settlement right, along with fiat conversion and multiple local rails. In phase two, merchants will hold onto their stablecoins and earn yield or rewards. However, Pelé cautioned that payments must serve everyone and are a local business, making it unlikely for stablecoins to take over in the next 20 years.

Codjia explained why chain ownership is crucial: 'You want to own the infrastructure just like you want to own the highway.' This allows rail owners to set rules, such as currency fees. However, Worldline takes a different approach, staying agnostic and relying on issuers like Circle for interoperability.