Stablecoins: The Global Solution for Instant Payments

Stablecoins: The Global Solution for Instant Payments

Stablecoins have emerged as a revolutionary alternative in the global payments space, enabling instant and inexpensive transactions globally. These types of digital assets, linked to fiat currencies, transform the way money is sent, eliminating the barriers and costs associated with traditional transfer methods. With global growth in transaction volume, it is estimated that they will reach $5 trillion by August 2025.

How Do Stablecoins Solve Payment Problems?

Stablecoins offer several advantages that address the common problems of traditional payment systems:

• Instant Settlement: Transactions are completed within seconds, allowing for real-time trading operations and immediate access to funds.
• Cost Reduction: Transaction fees are reduced from significant percentages to flat fees ranging from $0.05 to $1, making micropayments and small transfers viable.
• Global Accessibility: Unbanked people can send and receive payments without relying on traditional banking infrastructure or volatile national currencies.
• Continuous Availability: Unlike traditional banking systems, stablecoin networks operate 24/7, allowing for higher transaction volumes during weekends.
• Programmable Money: Smart contracts allow for automatic and transparent payments, which is not so easy with legacy systems.

Cost Comparison: Traditional vs. Traditional Payments Stablecoins

To better understand the economic advantage of stablecoins, here is a comparison of costs and speeds of different payment methods:

• Bank transfer: $25-50; 1-3 days; only during working hours.
• Credit card (international): 3-5%; instantaneous; 24/7.
• Traditional remittances: 6.62% on average; hours to days; Limited hours.
• Stablecoin: $0.05-$1; Seconds; 24/7.

Real Transformation in Action: Who Is Embracing Stablecoin Payments?

An increase in stablecoin adoption by various entities is already observed:

• Consumers: In high-inflation regions, stablecoins allow consumers to make purchases and save, protecting their purchasing power.
• Global Companies: Corporations like Siemens use programmable stablecoins to automate their operations, allowing them to settle international invoices effectively.
• Remote Workers: Platforms like TransFi and Parallax facilitate instant global payroll, eliminating currency conversion costs.
• NGOs and Aid Organizations: Groups like GiveDirectly use stablecoins to distribute aid directly, reaching unbanked populations.

Overcoming Implementation Challenges

Challenges, such as high tariffs and slow networks, are being addressed by innovative solutions. The TON, for example, offers fast transactions with ultra-low fees, cementing its position as a leader in stable payments.

Advantages of TON for Stablecoin Payments

TON, by integrating with Telegram, creates a single payment environment:

• Mass Audience: More than 1 billion Telegram users represent the largest potential stablecoin payment network.
• No Incorporation Friction: No need to download separate apps.
• Very low costs: TON’s architecture allows for very inexpensive transactions.
• Instant Settlement: Confirmed payments in seconds, perfect for real-time trading.

Getting Started with Stablecoin Payments

Individuals and businesses can easily start making stablecoin payments through accessible wallets, such as TON Wallet and MetaMask. Businesses must:

• Choose networks and tokens that fit your needs.
• Initiate with low-value transactions while becoming familiar with and working with regulated providers.
• Design scalable systems to meet the growing demand for stablecoin payments.

The future of payments is programmable, instantaneous, and global. Stablecoins are making that future tangible today.

Source: TON Foundation