'The Global Payments System Is Being Rewired' — What's Next For Stablecoins?

The role of stablecoins in transforming global payments emerged as a central theme during a panel discussion at the Benzinga Future of Digital Assets conference. Panelist Jan van Eck, CEO of VanEck, described stablecoins as a driving force behind a new financial system, particularly in regions where traditional banking systems are less efficient.

"The global payments system is being rewired as we speak, and people are using stablecoins as the backbone," van Eck said, highlighting their impact on cross-border transactions and financial inclusion.

Stablecoins And Global Adoption

Van Eck emphasized the rapid adoption of stablecoins in emerging markets, which are increasingly used for foreign exchange and remittances. He pointed out that their transaction volume is now approaching double that of Visa, signaling their importance in global commerce. Despite this growing adoption, van Eck noted that stablecoin usage remains underappreciated in the United States, where traditional banking systems dominate.

One example he mentioned was the inefficiency of U.S. banking operations during national holidays. "Imagine a day like Veterans Day when no money can move between institutions in the United States. That world will be gone in three to five years."

The Role Of Regulation

While stablecoins present clear benefits, regulatory clarity remains a challenge. Van Eck expressed concerns over the potential for restrictive legislation, particularly if influenced by banking lobbyists. "I prefer them [legislators] to be completely passive," he said, emphasizing his concern that new laws could create unnecessary barriers to adoption. "The banking regulators love control. Jamie Dimon loves control."

The fight over crypto regulation in the U.S. continues to be contested among banking, securities and commodity regulators. Van Eck argued that the Securities and Exchange Commission has mishandled the digital asset space, allowing commodity regulators to take a leading role. Despite these challenges, he sees stablecoins as a critical tool for global financial systems.

Implications For Financial Advisors

Van Eck also addressed questions from financial advisors about integrating stablecoins into client accounts, noting that existing infrastructure like Charles Schwab may not be equipped to handle these assets directly. However, he anticipates that third-party platforms will fill the gap, enabling wider adoption within the traditional financial ecosystem.

He highlighted the importance of developing software solutions to streamline the integration of stablecoins into existing systems. "Clients are going to want it," van Eck said, predicting that financial institutions will need to adapt quickly to meet this demand.

A Future Built On Stablecoins

Stablecoins’ potential extends beyond individual transactions. Van Eck described them as a foundation for broader financial infrastructure, particularly in markets where traditional banking systems are failing. By enabling faster, cheaper and more efficient transfers, stablecoins could become essential to the global economy.

"Stablecoin usage is exploding," Van Eck concluded, emphasizing its potential to reshape how value is transferred worldwide. As adoption increases, the industry must overcome regulatory hurdles to unlock the full benefits of this transformative technology.

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