The role of stablecoins in transforming global payments emerged as a central theme during a conference panel discussion Benzinga Future of Digital Assets. Jan van EckPDG de VanEckdescribed stablecoins as a driver of a new financial system, especially in regions where traditional banking systems are less efficient.
“The global payment system is being reorganized and people are using stablecoins as a basis,” van Eck said, highlighting their impact on cross-border transactions and financial inclusion.
Stablecoins and global adoption
Van Eck highlighted the rapid adoption of stablecoins in emerging markets, which are increasingly used for foreign exchange and remittances. He highlighted that their transaction volume is now close to double that of Visa, reflecting their importance in global trade. Despite this growing adoption, van Eck noted that the use of stablecoins remains underreported in the United States, where traditional banking systems dominate.
One example he mentioned is the inefficiency of U.S. banking operations during holidays. “Imagine a day like Veterans Day where no money transfers between institutions in the United States are possible. This world will no longer exist in three to five years.”
The role of regulation
While stablecoins offer clear advantages, regulatory clarity remains a challenge. Van Eck expressed concerns about the potential for restrictive legislation, particularly if influenced by bank lobbyists. “I would prefer that they [les législateurs] be completely passive,” he said, highlighting his concern that new laws could create unnecessary barriers to the adoption of stablecoins. “Banking regulators like control. Jamie Dimon likes control.”
The fight over cryptocurrency regulation in the United States continues to be contested among banking, securities and commodities regulators. Van Eck argued that the Securities and Exchange Commission has mismanaged the digital asset space, allowing commodity regulators to take a leading role. Despite these challenges, he sees stablecoins as an essential 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 manage these assets directly. However, he anticipates that third-party platforms will fill the gap, enabling broader adoption in the traditional financial ecosystem.
He highlighted the importance of developing software solutions to streamline the integration of stablecoins into existing systems. “Customers will want it,” van Eck said, predicting that financial institutions will need to adapt quickly to meet this demand.
A future built on stablecoins
The potential of stablecoins goes beyond individual transactions. Van Eck described them as a basis 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.
“The use of stablecoins is exploding,” Van Eck concluded, highlighting its potential to reshape the way value is transferred around the world. With adoption increasing, the industry must overcome regulatory hurdles to unlock the full benefits of this revolutionary technology.
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