Stablecoins moved beyond being a niche financial tool for crypto traders to hedge volatility and, in the near future, could rival credit and debit cards as a payment instrument.
Chris Colson, Payments Expert at the Federal Reserve Bank of Atlanta, notes that stablecoins are becoming an increasingly in-demand payment method in the commercial sector, helping businesses remain competitive amidst digital transformation.
According to the expert, the growing demand for stablecoins is driven by factors such as:
- lower transaction fees;
- near-instant settlements;
- attracting new audiences interested in cryptocurrencies.
Colson highlights the rising adoption of stablecoins by retailers like Overstock, Chipotle, Whole Foods, and GameStop, payment giant Stripe, travel platform Travala, and cinema chain Regal Cinemas, all of which now accept stablecoins as payment. He also mentions Bitrefill gift cards, which can be purchased with cryptocurrencies, including stablecoins, and used at major retailers like Amazon, Walmart, Starbucks, and others.
While Colson hesitates to predict how soon stablecoins could pose significant competition to bank cards, he emphasizes that this will largely depend on the regulation of digital assets.
Crypto payments, in general, are becoming increasingly popular. For instance, Travala is expanding its list of accepted cryptocurrencies for years, enabling users to pay for flights, hotel stays, tours, and other travel services. Another example is Sheetz, one of the largest convenience store chains in the U.S., which began accepting crypto payments for goods and services in 2024.
