Stablecoin Hesitation Eases with Bank Protections

A new study from Visa reveals that Americans are hesitant to use stablecoins due to concerns about safety and trust. However, if stablecoins came with bank-level fraud protection and deposit insurance, a majority of respondents would be willing to use them for international transfers.

The report found that in a hypothetical scenario where stablecoins offered these protections, the share of Americans willing to use them jumped from 36% to 56%. This is significant, as it suggests that a lack of trust and understanding are major barriers to adoption.

The study also highlighted the importance of familiarity with digital currencies. Some 56% of U.S. respondents had never heard of stablecoins, and many who had wrongly assumed they fluctuate like Bitcoin.

The findings held true outside the United States as well, with willingness more than doubling from 34% to 74% in Latin America when protections were in place.