Stablecoin Payments Surpass $1 Billion Monthly Milestone

Stablecoins have reached a significant milestone in their evolution as a payment method. According to recent data, spending via stablecoin-linked payment cards exceeded $1 billion per month for the first time in July. This marks a turning point for these digital currencies, which are increasingly being used for everyday transactions.

The technology is spreading rapidly in Latin America and Africa, where dollar-pegged stablecoins such as USDT and USDC are used as a means of savings, international remittances, and access to the dollar payment system. RedotPay, a company that already serves over 8 million users, forecasts that by 2028, the volume of direct card payments in stablecoins could reach $50 billion per year.

One key advantage of using stablecoins for payments is that they can be held digitally and used with regular Visa or Mastercard cards, eliminating the need to view them as cryptocurrencies. However, not everyone is convinced of their reliability. The Bank for International Settlements (BIS) remains skeptical about the risks associated with stablecoins, citing concerns over financial stability, anti-money laundering (AML), and the fragmentation of the monetary system.