Stables co-founder Bernado Bilotta reveals how stablecoins are breaking into the mainstream. With Stables’ recent expansion to Europe through a partnership with Mastercard, stablecoins like USDC are now accessible to everyday users. Discover the impact of this shift and what it means for the future of digital payments.
Stablecoins Break Into Mainstream: Stables and Mastercard Partnership Expands to Europe
In a significant development for the cryptocurrency industry, Australian stablecoin payments startup Stables has announced its expansion into Europe in collaboration with Mastercard. This move is part of a broader trend where stablecoins, particularly dollar-pegged assets like USDC, are increasingly being adopted for mainstream use beyond traditional "crypto-native" applications.
Expanding Horizons: Stables' European Venture
Bernado Bilotta, co-founder of Stables, emphasized the importance of this expansion during an interview with Cointelegraph. He highlighted the vast potential of the European market, which is approximately twenty times larger than Australia. This partnership will enable Stables users to make purchases with Circle’s USD Coin (USDC) across 27 European countries wherever Mastercard is accepted, including through digital vendors like Apple Pay and Google Pay.
Bilotta noted that stablecoins are no longer confined to those deeply entrenched in the crypto world. Instead, they are becoming a practical tool for everyday financial transactions, appealing to a broader audience with genuine needs for stability and convenience in digital payments.
Mainstream Adoption of Stablecoins
Stablecoins, described by Morgan Stanley as “crypto’s killer app,” are proving to be the most stable and widely adopted product in the cryptocurrency market. Unlike other highly speculative crypto assets, stablecoins offer a reliable alternative for trading, remittances, cross-border payments, and other financial applications. This stability and utility are attracting both crypto-native and non-crypto-native users worldwide.
Rising Transaction Volumes and Global Appeal
Since the beginning of 2023, stablecoin transaction volumes have surged, reflecting their growing popularity and utility. Bilotta pointed out that individuals in countries experiencing high inflation, such as Argentina and Turkey, as well as regions with significant currency fragmentation like Southeast Asia, are turning to stablecoins as a more stable financial alternative.
Australia: A Perfect Sandbox for Crypto Innovation
Founded in 2021, Stables has leveraged Australia’s stringent regulatory environment to build a robust and compliant crypto business. Bilotta described Australia as an ideal "sandbox" for developing a crypto firm due to its high regulatory standards for financial services. This rigorous framework has enabled Stables to expand its operations confidently into other jurisdictions.
Despite concerns from larger crypto businesses like Kraken and Coinbase about the lack of regulatory clarity in Australia, Bilotta remains optimistic. He explained that Stables operates under a fully compliant model, which does not expose users to the same risks as crypto exchanges. This compliance has positioned Stables favorably for international expansion.
Partnership with Mastercard and Future Prospects
In March 2023, Stables launched capabilities for international remittance payments between Australia and the Philippines. By June 25, the partnership with Mastercard had expanded to support euro transactions within the app, allowing users to spend USDC in 23 countries throughout the European Union.
Bilotta acknowledged that while Australia’s crypto regulation needs some adjustments, particularly in resolving banking issues for crypto companies, the country has the potential to become a major crypto hub. He cited the presence of other successful Australian crypto firms like Synthetix, Infinex, Immutable, and THORChain as evidence of the country's innovative spirit in the crypto space.
Challenges and Regulatory Landscape
One of the most significant risks for crypto companies in Australia is being debanked by local financial institutions. This issue came to the forefront in May 2023 when Binance suspended Australian dollar fiat services due to decisions from its third-party payment service provider, Cuscal. Additionally, several of Australia’s largest banks have imposed restrictions on both retail and commercial crypto use over the past 18 months.
Conclusion: A New Era for Stablecoins
The partnership between Stables and Mastercard marks a pivotal moment for the mainstream adoption of stablecoins. As these digital assets continue to gain traction, they are set to revolutionize the way people conduct everyday financial transactions. With the expansion into Europe, Stables is poised to lead this transformation, demonstrating that stablecoins are not just a niche product for crypto enthusiasts but a practical tool for a global audience.
For more updates on the latest developments in the crypto world, stay tuned to OMGfin, your trusted source for all things crypto.
(TOM MITCHELHILL, COINTELEGRAPH, 2024)