Stablecoins Can Redefine Global Finance, VanEck CEO Says: Are Banks Falling Behind?

As financial systems grapple with inefficiencies, stablecoins emerge as a transformative force in global finance.

During a discussion led by Paul McCaffery at the recent Benzinga Future of Digital Assets conference, panelists explored how these digital currencies reshape payment systems and force institutions to reevaluate their roles.

The Global Payments System Undergoes a Shift

Jan van Eck, CEO of VanEck, highlighted the increasing use of stablecoins in payments and cross-border transactions. "The global payments system is being rewired as we speak," van Eck said, noting that stablecoin transaction volumes are "approaching twice that of Visa." This growth, he added, reflects stablecoins' efficiency and appeal, especially in countries with volatile currencies or limited access to traditional banking services.

See Also: Pro-Crypto Congress In 2025? Experts See ‘Key Area For Advancement

Emerging markets, van Eck explained, are leading the charge in stablecoin adoption, using them as a substitute for unstable national currencies. He emphasized their importance in enabling financial access, saying, "Many companies are now using stablecoins as the backbone for payments."

Institutional Hesitance And Regulatory Questions

While stablecoins promise efficiency and speed, integrating them into existing financial systems remains challenging. Van Eck cautioned about potential regulatory obstacles, stating, "The structural fight over crypto is between the banking, security, and commodity regulators." He expressed concerns that regulatory measures could hinder progress, mainly if influenced by banking interests.

Van Eck also pointed to the banking system's reliance on control as a key sticking point. "Jamie Dimon loves control. The banking regulators love control," he said, warning that restrictive policies could stifle stablecoin adoption. Despite these concerns, he predicted stablecoins would find their way into mainstream finance, particularly through collaboration with technology providers.

A Demand For Change

As van Eck illustrated with a real-world example, institutional interest in stablecoins is already growing. "At a recent conference, an advisor asked me, ‘When will I be able to take stablecoins into my clients' accounts?'" he shared. This demand highlights how financial professionals see the potential for improving transaction efficiency.

Van Eck also noted stablecoins' potential to reduce settlement delays, pointing out inefficiencies in current systems. "On Veterans Day in the U.S., no one could send money to institutions," he said. "That world will be gone in three to five years."

A Look Toward The Future

The panelists agreed that stablecoins represent just the beginning of broader financial shifts. While regulatory clarity remains a challenge, the benefits of faster, more reliable transactions are undeniable. They suggested that stablecoins may soon become indispensable for institutions seeking to stay competitive in an increasingly digital financial landscape.

Van Eck summed up the urgency for change: "What if you could rewire the global settlement system on institutional stablecoins that are yield-bearing?" As the panel concluded, one thing was clear: stablecoins are not just a temporary trend—they are a catalyst for an evolving financial ecosystem.

Now Read:

• StraitsX Co-Founder Liu: We Envision a Future Where Stablecoins Play a Pivotal Role In the Digital Economy

Image: Shutterstock