Visa Predicts Surge in Non-Dollar Stablecoins

In the coming years, demand for stablecoins based on non-dollar fiat currencies is expected to rise. This was stated by Kai Sheffield, head of Visa’s cryptocurrency division, as reported by The Block.

“Dollars are great for cross-border transactions, but you need to be able to convert them quickly and efficiently. Other currency stablecoins can play a big role in this,” he noted. 

The Visa executive added that in the future, all major fiat currencies will be represented on the blockchain, although USD stablecoins currently make up 99% of the market. 

Sheffield finds it “exciting” to see more stablecoins emerging that attempt to differentiate themselves from USDT or USDC. 

“Now it seems that in most cases people are explicitly using stablecoins. They know what a stablecoin is, and there is a brand directly oriented towards the consumer. But there are many other use cases that can occur just on the backend, where the brand doesn’t matter, and then it all comes down to economics,” added the senior manager. 

Sheffield stated that 2024 marked a turning point when some non-crypto companies attempted to solve issues with payments to overseas freelancers using stablecoins, especially in high-inflation countries like Nigeria and Argentina.

Currently, the question of whether stablecoins can become an internal payment medium linking both cross-border and local domestic payment systems remains both a challenge and a significant opportunity, emphasized the head of Visa’s crypto division.

Back in 2025, BitGo plans to release a dollar-backed stablecoin, USDS, which will offer passive income.