More Than 90% of Stablecoin Transactions Aren't From Real Users, Visa Study Finds

More than 90% of stablecoin transaction volumes aren't coming from genuine users, according to a new metric co-developed by Visa, suggesting such crypto tokens may be far away from becoming a commonly used means of payment. Bloomberg: The dashboard from Visa and Allium Labs is designed to strip out transactions initiated by bots and large-scale traders to isolate those made by real people. Out of about $2.2 trillion in total transactions in April, just $149 billion originated from 'organic payments activity,' according to Visa.

Visa's finding challenges stablecoin proponents' argument that the tokens, pegged to an asset like the dollar, are poised to revolutionize the $150 trillion payments industry. PayPal and Stripe are among the fintech giants making inroads into stablecoins, with Stripe co-founder John Collison in April citing 'technical improvements' for being bullish on the tokens. Visa itself, which handled more than $12 trillion worth of transactions last year, is among companies that could stand to lose out should stablecoins become a generally accepted means of payment.

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