Stablecoins may not turn people into unexpected millionaires, as was the case with Bitcoin, but they are designed to be more practical in everyday life, AFP reported.

The new regulatory framework in the US, known as the GENIUS Act, recently signed by President Donald Trump, has the potential to boost stable digital currencies, whose value is pegged to traditional national currencies.

The most popular among them are Circle's USDC and Tether's USDT, both of which are pegged to the US dollar.

Stablecoins are seen as an effective alternative to money transfers. Currently, most people use services such as Western Union, Ria, and MoneyGram for international transfers, which often involve high fees. With stablecoins, transactions are carried out directly between users, funds are received immediately, and usually at a lower cost. In addition, these transfers can protect the value of funds in countries with hyperinflation or strict currency regulations, said Prof. Henry Kim of York University in Canada.

Stanford University finance professor Darrell Duffy predicts that the GENIUS Act, passed by Congress in July, will accelerate the use of stablecoins for cross-border payments. Several startups already offer companies the ability to pay employees abroad directly in stablecoins, bypassing local currencies and banking systems.

Online merchants also benefit from stablecoins, as they can reduce their dependence on debit and credit cards, which has a positive impact on their bottom line. According to Christian Catalini of MIT, sales in stable cryptocurrency eliminate the intermediation of banks and card operators. Last year, Visa and Mastercard collected about $187 billion in fees in the US, according to data from the Merchant Payments Coalition.

Large platforms such as Amazon, Walmart, China's JD.com, and Expedia are considering creating their own stable cryptocurrencies. Catalini points out that this would allow them to reduce fees, improve loyalty programs, and even offer financial services, while reducing their dependence on traditional banks.

The transition to such a model would help international corporations avoid the negative impact of currency fluctuations on their financial results, but it raises questions about security. The traditional financial system invests heavily in protection against fraud and cyber threats — a challenge that cryptocurrencies will also have to address.

Stable cryptocurrencies are likely to be even more important in commercial relations between companies, according to Prof. Kim. Liu Qiangdong, founder of Chinese conglomerate JD.com, notes that stable coins can reduce cross-border payment costs by up to 90% and speed up transaction execution from days to seconds.

Kim adds that artificial intelligence agents capable of performing computer tasks independently are particularly well suited for automated management of transactions with stable currencies. | BGNES