A recent study conducted by Visa, in collaboration with Allium Labs, has raised questions about the widespread adoption of stablecoins as a viable means of payment, challenging the narrative surrounding these cryptocurrencies.

The study introduces a new metric developed by Visa to filter out transactions initiated by bots and large-scale traders, focusing solely on those made by genuine users. Out of $2.2 trillion in total stablecoin transactions in April, only $149 billion were deemed to originate from "organic payments activity," according to Visa's adjusted metric.

This revelation suggests that less than 10% of stablecoin transaction volumes are derived from genuine users, casting doubt on the widespread adoption of stablecoins for payments.

Visa's dashboard employs two crucial filters to distinguish genuine transactions from artificial ones. The single-directional volume filter eliminates redundant internal transactions, while the inorganic user filter disregards transactions from accounts exhibiting characteristics indicative of bot activities or transactions from large entities like centralized exchanges.

Pranav Sood, executive general manager for EMEA at Airwallex, commented on the findings, suggesting that stablecoins are still in the early stages of development as a payment method. While acknowledging their long-term potential, Sood emphasized the importance of enhancing existing payment systems in the short and mid-term.

The study's implications extend beyond the stablecoin market, with potential ramifications for payment processors like Visa. With the possibility of stablecoins becoming widely accepted, there are concerns about potential losses for traditional payment processors if these cryptocurrencies gain traction.

Despite these challenges, experts predict a significant increase in the total value of all stablecoins in circulation by 2028, driven by their instantaneous and low-cost transaction capabilities. Major players in the payment industry, such as PayPal and Stripe, have already made moves to incorporate stablecoins into their platforms to facilitate faster and more cost-effective transactions.

As the debate surrounding stablecoin adoption continues, stakeholders in the crypto and traditional finance sectors alike will closely monitor developments to gauge the future trajectory of these digital assets in the payments landscape.