Visa's research indicates that stablecoins in the U.S. could grow exponentially if there was a bank-like protection mechanism

Visa reveals survey results: Bank-level security may spur the use of stablecoin for cross-border money transfers by US users

Visa revealed the results of a recent survey indicating that fraud protection in banking and deposit insurance may be an important factor driving adoption of stablecoin for cross-border transactions among users in the United States.

According to a US consumer survey of 2,192 people released on Wednesday, Visa indicated that the "intent to use" stablecoin by American users may increase from 36% to 56% "in situations where it is assumed there is fraud protection at bank and deposit insurance levels".

"Nearly two-thirds (64%) of survey respondents said they trusted the payment service provider more than the technology itself", Visa noted. "The willingness to use stablecoins increased from 36% to 45% when the service was available through a financial institution with which users were already familiar".

This survey offers a bank-style protection concept for bitcoin developers in the US, as companies prepare to enforce the GENIUS Act (Guiding and Establishing National Innovation for U.S. stablecoins Act), which is currently the final regulatory step by the United States Financial Conduct Authority before an expected effective date of January 2027.

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Unlike the products of traditional financial institutions such as banks, stablecoins lack fraud protection in many respects and are not covered by Federal Deposit Insurance Corporation (FDIC) deposit insurance under the GENIUS Act. Since January 2016, stablecoins in the United States have still not been explicitly insured by FDIC or protected from fraud, but practices to deal with illegal activity are also included.

European Union Bank pushes for revision of minimum deposit rules for stablecoins

On Tuesday, the European System of Central Banks (ESCB) called for an amendment to a rule that requires stablecoins to hold at least 30% of bank deposits in reserve or 60% for those classified as "critical". The group suggested replacing this requirement with asset eligibility requirements, citing the risk that users could quickly withdraw their deposits.

The proposed amendments to the Bank of Europe's guidelines on stablecoins are included in Region crypto 's Markets in Assets (MiCA) framework, which will come into force with respect to stablecoins from June 2024.

According to data from payment infrastructure company Decta, the market value of regulated euro stablecoins will more than double between 2025 and 2026, leading up to the end of MiCA's transition period, while US dollar-linked ones such as USDC and USDT still lead all stablecoins with a total market value estimated at $260,000 million.