Stablecoin Payments vs Speculation: A Crucial Distinction

Raj Kamal, founder and CEO of TransFi, a Dubai-based cross-border payments company, argues that payment volume and speculation should be separated in data and regulation. He points out that while the media focused on Hunter Biden's $LAPTOP token losing value quickly after launching, the underlying network carried a significant share of stablecoin payments.

Kamal notes that this network, Base, processed $565 billion in adjusted stablecoin volume in June, accounting for 31.5% of the global total. He suggests that only a small portion of this volume is actual payments, and that most is speculation or trading activity.

The CEO emphasizes that the distinction between payment volume and speculation is crucial because it affects how we understand the role of stablecoins in cross-border transactions. He argues that while stablecoins have advantages over correspondent banking, such as faster settlement times, they are not yet a major player in large-value wholesale flows.