Payment giants Visa and Mastercard are reportedly gearing up to fend off a quarter-trillion-dollar threat against their business models.
Bloomberg reported that the executives of the two giants – who have a combined market capitalization of $1.1 trillion – were preparing themselves for the rise of stablecoins. These coins will drastically reduce the costs of daily transactions for their customers.
Jack Forestell is the chief product and strategic officer of Visa. He says that corporate adaptability won out in previous disruptions such as buy-now, pay-later and mobile wallets.
“When you are crypto natives you can easily send money, but to make it useful for everyday use, you will need hyperscale connectivity. We provide that onramp.”
Jorn L. Lambert, Chief Product Officer at Mastercard says the growth of stablecoins is more about “opportunities”, rather than being a replacement threat.
According to CoinGecko data, there are currently over 255 billion dollars worth of stablecoins available.
Anonymous people with knowledge of the situation said in a report published by The Wall Street Journal last month that the largest US retailers were considering issuing dollar-pegged cryptocurrency assets to reduce transaction fees.
The WSJ’s report listed Walmart, Amazon Expedia, and other unnamed airlines.
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Image generated: midjourney
This article appeared on the ICD.
