Banks ‘very interested’ in stablecoin use —Stripe exec

Banks are showing strong interest in integrating stablecoins into their services, according to Stripe's co-founder and president, John Collison. Stripe has held early discussions with banks about the potential use of stablecoins, signaling a growing acceptance of these cryptocurrencies in global banking.

The main driver behind this interest is the significant reduction in transaction costs that stablecoins offer, especially for cross-border payments.

Traditional banking transactions are often expensive and slow, sometimes taking days and involving high foreign exchange fees. Stablecoins, being digital tokens pegged to fiat currencies like the US dollar, enable instant transactions with much lower fees, making them highly attractive for future payment systems.

Stripe has already launched stablecoin-based accounts in over 100 countries and acquired the stablecoin technology startup Bridge for $1.1 billion to bolster its stablecoin offerings.

Collison emphasized that a large portion of Stripe's future payment volume will be in stablecoins, reflecting their growing importance in the payments landscape.

However, wider adoption by banks still depends on regulatory approvals and adjustments in legal frameworks to ensure confidence in the backing and safekeeping of stablecoins.

Despite these challenges, the trend indicates that stablecoins will play a significant role in reshaping global payments, potentially disrupting traditional banking cash management and foreign exchange revenue models.

Banks are "very interested" in stablecoins due to their potential to reduce costs and speed up payments, with Stripe actively engaging banks to integrate stablecoins into their products as part of the future of payments.

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