Visa and PayPal executives push to accept stablecoins to streamline global payments
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Stablecoins reduce costs and settlement times in international transactions. The “stablecoin sandwich” model is effectively used in US-Mexico transactions.
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Visa and PayPal executives argued for a stablecoin during a panel discussion at FinTech Week in DC earlier today.
Visa Head of Crypto Coy Sheffield and PayPal Digital CEO Jose Fernandez da Ponte emphasized the transformative potential of stablecoins by streamlining cross-border transactions and streamlining global payments.
The discussion centered around how stablecoins, once primarily used in crypto trading, are now becoming important tools for facilitating global business-to-business (B2B) and peer-to-peer (P2P) payments.
Stablecoins can significantly reduce settlement times, allow for 24/7 transactions and eliminate costs associated with traditional cross-border payment methods such as SWIFT transfers.
Fernández da Ponte emphasized that a stable coin is helping companies move their money across borders faster and more efficiently, allowing for faster repatriation of profits and better foreign exchange rates.
He noted that CFOs are beginning to adopt stablecoins as they realize the benefits of instant settlement.
Sheffield introduced the concept of the “stablecoin sandwich” when discussing stable coin applications, where fiat currency is used at both ends of the transaction, while a stable coin facilitates the transfer in the middle.
This model has proven effective for businesses moving funds from the US to Mexico.
Anna Yuan, founder of stablecoin infrastructure provider Perena, discussed how high-performance blockchains like Solana can be used to rapidly support these transactions.
She explained that the fast block times make Solana stable coin suitable for managing transactions, also highlighting the challenges of cross-chain interoperability between slow networks.
Both Visa and PayPal executives stressed that stablecoins are not just a tool for crypto traders, but are quickly becoming a cornerstone of modern global payment systems. They expect the technology to be increasingly adopted by businesses and consumers.
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