The recent passage of the Guiding and Establishing National Standards for U.S. Stablecoins Act (GENIUS Act) by the U.S. Senate marks a pivotal milestone in regulatory clarity for stablecoins. Visa’s Chief Strategy and Product Officer, Jack Forestell, articulated the company’s perspective in a June 23 article titled The Potential Genius of GENIUS, aligning with Visa CEO Ryan McInerney’s public statements on embracing stablecoins.
A "Potential" Watershed Moment in Payments History
For Visa, the GENIUS Act represents a potential turning point—one that could unlock the next era of digital programmable money via stablecoins. However, Forestell emphasizes that achieving mainstream adoption requires overcoming three critical layers of infrastructure:
1. The Technology Layer
A robust, scalable, and secure blockchain backbone is essential to process high-volume transactions with zero tolerance for failures or breaches. Advances in distributed ledger technology (DLT) already offer promising solutions.
2. The Reserve Layer
Trust in stablecoin value hinges on regulated, reserve-backed models. Compliance here ensures stability and reliability.
3. The Interface Layer
The ultimate challenge lies in creating a seamless user experience where:
- Transactions are universally trusted and accessible.
- Value tokens can be easily converted to local fiat currencies.
- Scalability reaches billions of end-users.
👉 Why Visa’s Infrastructure Matters for Stablecoin Adoption
Without solving the interface layer, stablecoins risk remaining niche tools for wholesale markets rather than achieving ubiquity in everyday payments.
Strategic Plays by Industry Leaders
Visa and peers are actively bridging the "last mile" gap:
- Visa: Invested in stablecoin infrastructure firm BVNK, integrating with Worldpay and Visa Direct.
- Circle: Built the Circle Payment Network to link USDC with global financial institutions.
- Stripe: Acquired Bridge and Privy to embed stablecoins into Shopify and other platforms.
- PayPal: Launched PYUSD, targeting 40M users via Venmo and PayPal apps.
Key Insight:
Adoption follows three stages—awareness (e.g., GENIUS Act), utility (current phase), and ubiquity (requiring broader merchant acceptance).
Stablecoins’ Real-World Impact
Solving Pain Points
Stablecoins excel in:
- Emerging Markets: Offering dollar access in high-inflation, currency-restricted economies (e.g., Argentina, Nigeria).
- Cross-Border Flows: Streamlining C2C remittances and B2B payments (e.g., USDT’s use in commodity trades).
"Over 60% of Tether’s growth comes from grassroots usage in Global South markets—not crypto trading." — Tether CEO
The Competitive Edge
While U.S. markets have efficient digital dollar alternatives, stablecoins deliver 30–40% efficiency gains in regions with underbanked populations.
👉 How Stablecoins Are Reshaping Global Finance
FAQs
Q1: Will stablecoins replace credit cards?
A: Unlikely soon. Cards offer convenience, rewards, and fraud protection. Stablecoins may complement them, especially in cross-border scenarios.
Q2: Why focus on emerging markets?
A: These regions face acute financial inefficiencies. Stablecoins bypass legacy systems, offering faster, cheaper transactions.
Q3: What’s Visa’s role in stablecoin adoption?
A: Visa’s network provides scalability. Even decentralized projects may leverage its rails for mass usage.
Final Thought:
The GENIUS Act sets the stage, but ubiquity demands collaboration—between regulators, tech innovators, and financial giants like Visa. The race isn’t just about technology; it’s about who builds the most inclusive financial bridge to the future.