The Next Phase of Stablecoins: Visa’s Strategic Vision

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The passage of the Guidance and Establishment of National Innovation with Stablecoins Act—commonly known as the GENIUS Act—by the U.S. Senate marks a pivotal moment in the evolution of digital finance. As regulatory clarity emerges, major financial players like Visa are positioning themselves at the forefront of what could become the next era of global payments. With insights from Visa’s Chief Strategy and Product Officer, Jack Forestell, and CEO Ryan McInerney, we can now glimpse into how one of the world’s most powerful payment networks envisions the future of stablecoins.

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This moment isn’t just about regulation—it’s about readiness. As the old Chinese proverb goes: “Ducks know when river waters warm in spring.” And few institutions are better positioned to sense that shift than Visa.

A Potential Turning Point in Payment History

Jack Forestell describes the GENIUS Act as a “potentially significant moment” in the history of payments. While stablecoins present a transformative opportunity for programmable digital money, their path to mass adoption remains complex.

As McInerney emphasized in a recent CNBC interview:

“The world hasn’t changed overnight with this bill—but Visa has been preparing for stablecoins for years.”

Expanding any new payment technology requires more than innovation—it demands trust across buyers, sellers, senders, and receivers. That trust is built on layers: security, fraud protection, dispute resolution, ease of use, and continuous innovation.

For stablecoins to become part of the next-generation digital payment infrastructure, they must succeed across three foundational layers:

1. The Technology Layer

A robust, scalable, flexible, and open technical backbone is essential—one capable of processing high-volume transactions securely and reliably. Blockchain advancements have already laid promising groundwork here.

2. The Reserve Layer

Trust in value and stability is non-negotiable. Regulated, reserve-backed stablecoins—like USDC or PYUSD—address this need by anchoring digital tokens to real-world assets.

3. The Interface Layer

This is where adoption happens—or fails. For widespread use, stablecoins need an accessible interface that:

Without solving the last-mile problem, stablecoins risk remaining niche tools for closed-loop systems or wholesale financial markets—not mainstream payment solutions.

Bridging the Gap: From Infrastructure to Ubiquity

While blockchain provides settlement rails and compliant stablecoins offer reserve backing, real-world usability hinges on integration with existing financial ecosystems.

Several major players are already building these bridges:

PayPal’s adoption roadmap offers valuable insight:

  1. Awareness – Regulatory clarity (like the GENIUS Act) sparks interest.
  2. Utility – Users begin transacting meaningfully.
  3. Ubiquity – The technology becomes invisible in daily life.

This final stage—ubiquity—is when users stop thinking about how they pay and simply pay effortlessly, much like today’s seamless internet connectivity.

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Visa echoes this vision: true adoption means people use new payment methods without even realizing it. For them, it won’t matter whether the transaction runs on blockchain or involves stablecoins—it will just work.

Visa as a Service: Powering the Future of Payments

Jack Forestell highlights Visa’s unmatched infrastructure:

“We’ve built the world’s largest, most secure, trusted third-party payments layer.”

With over **$100 billion in crypto-related transaction volume** since 2020—including $95B in purchases and $25B in spending—Visa is already deeply embedded in the digital asset economy.

The “Visa as a Service” stack enables:

This ecosystem removes friction for users by answering critical questions:

For most consumers and businesses, fiat remains king—but for those using stablecoin-powered solutions connected to Visa’s network, the experience is equally smooth, secure, and familiar.

FAQ: Understanding Stablecoins and Visa’s Role

Q: Why does Visa care about stablecoins if most people still use fiat?
A: Because stablecoins represent the future of programmable money. By integrating early, Visa ensures its network remains central—even as transaction rails evolve.

Q: Can stablecoins really replace traditional payment methods?
A: Not universally—but in specific use cases (e.g., high-inflation economies or cross-border remittances), they offer clear advantages in speed, cost, and accessibility.

Q: Is Visa threatened by big tech companies launching their own stablecoins?
A: Companies like Walmart or Amazon could bypass traditional networks to save on fees. But building a global settlement system is far harder than issuing a token—Visa’s scale and compliance infrastructure remain unmatched.

Q: Where are stablecoins most useful today?
A: Outside developed markets. In emerging economies—especially across Asia, Africa, and Latin America—stablecoins provide dollar access where banking infrastructure is weak.

Q: Does regulation help or hinder stablecoin growth?
A: Clear rules like the GENIUS Act help. They reduce uncertainty, encourage institutional participation, and protect consumers—key steps toward mainstream adoption.

What Problems Do Stablecoins Actually Solve?

Jack Forestell often fields this question. His answer: stablecoins have already found product-market fit in crypto trading, but their broader potential lies elsewhere:

Tether CEO Paolo Ardoino revealed a telling statistic: less than 40% of USDT’s market cap ties directly to crypto trading. Over 60% stems from grassroots usage in emerging markets. The next wave may come from commodity trade settlements.

Visa sees these gaps not as threats—but as growth opportunities. Their strategy includes:

The Real Battlefield: Global South vs. Financial Inclusion

There’s a widespread misconception: because most stablecoins are USD-backed, adoption should be strongest in the U.S. Reality tells a different story.

As Web3 analyst “Xiaolv” notes:

“The real product-market fit for stablecoins isn’t in Silicon Valley—it’s in the Global South.”

In highly efficient markets like the U.S., financial rails operate at ~90% efficiency. Stablecoins might improve that to 95%—a marginal gain. But in regions with broken banking systems, stablecoins can boost efficiency by 30–40%, transforming lives.

Consider:

Tether already serves 450 million users, reaching far beyond traditional banking’s reach. Meanwhile, 3 billion people remain unbanked globally.

Tether’s edge? Not just technology—but an unprecedented dollar distribution network across emerging economies.

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While Circle faces competition from Wall Street giants post-IPO, Tether’s real challenger may come from geopolitical shifts—like China’s Belt and Road initiative—reshaping financial access in developing nations.

Final Thoughts: The Road Ahead

The GENIUS Act is more than legislation—it’s a signal. The era of speculative ambiguity around stablecoins is ending. What comes next is integration, scaling, and real-world impact.

Visa isn’t waiting. It’s leveraging its global network, trusted brand, and technological depth to ensure that when stablecoins go mainstream, they flow through—and strengthen—its ecosystem.

We’re still at the beginning. But one thing is clear:
The future of money isn’t just digital. It’s programmable, inclusive, and borderless—and Visa intends to be its backbone.

Keywords: stablecoins, Visa, GENIUS Act, programmable money, payment infrastructure, financial inclusion, blockchain payments, digital currency.