Visa has unveiled a new study demonstrating how implementing bank-level protections could significantly increase American interest in utilizing stablecoins for international money transfers.
Based on a survey of over 2,000 US consumers, the findings show that Americans are seeking faster and more cost-effective methods to send money to loved ones overseas, while still demanding robust security measures.
The research indicates that willingness to adopt stablecoins, which are crypto assets pegged to the US dollar, jumps from 36% to 56% when they come with safeguards against fraud and deposit insurance, similar to what traditional banks provide.
A large majority of participants (nearly two-thirds) emphasize that trust in digital currency services relies more on the provider than the technology itself. Additionally, the inclination to use stablecoins increases from 36% to 45% when they are offered through an established financial institution.
Notably, traditional banks and global payment networks are perceived as the most trustworthy options for digital currency services, with trust levels of 61% and 60% respectively.
Despite the potential surge in stablecoin adoption in the US, more than half of Americans are unfamiliar with dollar-pegged crypto assets, often associating them with price volatility similar to Bitcoin (BTC).
The report also highlights that 36% of respondents have encountered scams related to cross-border payments.
Furthermore, 44% express concerns about AI-generated deepfakes impersonating family members, while 24% have received deceptive messages created by AI that appear authentic.
About 20% of individuals who send money to family members abroad have had to reduce their own expenses to support their loved ones.
In the words of Vira Platonova, Global Head of Visa Direct,
“Remittances play a crucial role in supporting education, basic needs, and investments in the home country. Our research underscores the significance of trust for those who depend on these financial lifelines. The future success in this industry will be determined by the providers who are most effective in earning and maintaining trust.”
The study points out that stablecoins currently lack deposit insurance coverage such as the FDIC, and the protective measures discussed are hypothetical.
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Featured Image Source: Shutterstock/Tithi Luadthong/Natalia Siiatovskaia