Watch: Stablecoins reshaping the future of payments
As the world shifts towards digital-first economies, stablecoins are becoming the essential bridge between traditional banking and decentralised finance. At SiGMA, the panel on Stablecoins and Payments Ecosystem: User Exchange, Infrastructure and Regulation Hurdles brought together leading industry players to discuss where regulatory changes, user experience, and infrastructure have paved the way for stablecoins as the path forward.
Moderated by Julian Goffin, Co-Founder and CEO of Alunafi Ltd, the panel featured James Bennett (CEO, StableMint), Jonathan Lowe (CEO and Founder, Biptap), Alexander Borowski (CEO, XREMIT.IO), and Mark Berkovich (CEO, KeaBank). Together, they offered a candid discussion on where stablecoins stand in the broader financial ecosystem and where they’re heading next.
The user experience challenge
Jonathan Lowe began by addressing one of the most pressing concerns in stablecoin adoption, the user learning curve. He argued that technological sophistication is no longer the main barrier; instead, simplicity and familiarity are the keys to mass adoption.
“Users don’t want to understand the technology behind it,” Lowe said. “They just want to use their digital card or app as usual, without needing to learn about wallets or crypto mechanics.”
His solution: build infrastructure that seamlessly integrates blockchain and stablecoins into daily transactions. However, he cautioned that the most significant bottleneck lies not in technology but in regulatory uncertainty, particularly concerning off-ramping and compliance consistency across markets.
Stability versus perception
James Bennett took a deeper dive into the question of stability itself, whether stablecoins truly live up to their name. He distinguished algorithmic failures such as Terra Luna and collateralised models like DAI, noting that while the former eroded public trust, the latter have proven resilient.
“The reality is the mass market doesn’t care about decentralisation, they care about certainty,” Bennett observed. He pointed out data indicating that, although overall crypto trading volume has decreased by nearly 50% since the previous market cycle, stablecoin transactions have increased by 300-400%, representing a clear and decisive move in using stablecoins as reliable payment instruments.
Regulation and the MiCA effect
Bennett also dissected the new regulatory complexities introduced by Europe’s MiCA framework. While MiCA was intended to provide clarity, the European Banking Authority’s interpretation, placing stablecoins under the Payment Services Directive (PSD2), has created new compliance burdens.
“Many exchanges and issuers believed that obtaining MiCA licensing was enough,” he explained. “But now, they must also qualify as payment institutions under PSD2. It’s the right direction, but the wrong timing.” This regulatory overlap has placed additional strain on companies, many of which will now need dual licensing to remain compliant in 2025 and beyond.
Infrastructure and ecosystem convergence
Mark Berkovich mentioned the increasing symbiosis of banks, fintechs and stablecoin issuers from an infrastructure standpoint. “Stablecoins longer present a risk; they are now part of the financial ecosystem,” Berkovich said. He also commended the iGaming industry for leading the adoption of payment innovations regarding its digital currency and payment options, referring to iGaming as the testing ground for new financial technologies.
Berkovich emphasised the growing competition among issuers such as Circle, whose infrastructure-first approach has set new industry standards. He predicted that the future of payments will belong to providers that can offer both. From an infrastructure perspective, Mark Berkovich pointed out the growing symbiosis between banks, fintechs, and stablecoin issuers. “Stablecoins are no longer considered a risk; they are now part of the financial ecosystem,” he explained, with equal fluidity.
Bridging global systems
Expanding on this idea, Lowe and Alexander Borowski explored how stablecoins can unify fragmented financial networks. Lowe described the potential to merge global payment rails such as SWIFT and SEPA using stablecoins as the settlement layer, enabling seamless international transactions.
Borowski, meanwhile, pointed to stablecoins’ role in remittances and inflation-hedging across emerging markets. “In regions like Latin America and Africa, stablecoins offer protection against currency devaluation,” he said. “They’re not just payment tools, they’re becoming a way for people to preserve wealth.”
The path to mainstream adoption
Looking ahead, the panellists agreed that collaboration between banks and blockchain innovators will define the next stage of financial evolution. While banks still dominate liquidity, stablecoins provide the flexibility and speed that traditional systems lack. As Berkovich concluded, “The goal is for even our grandmothers to use stablecoins confidently, just as they use cash or cards today.”
Despite regulatory friction and technical complexity, the panellists unanimously agreed that the stablecoin revolution is already underway, not as a disruption, but as an integration into global finance.
For more insights into blockchain, fintech, and the future of payments, visit the SiGMA website.
