Mastercard Highlights Bottlenecks in Stablecoin Payment Speed

Mastercard believes stablecoins have the potential to make payments more efficient. Executive Matthew Driver states that the technology could benefit remittances and currency pairs with lower liquidity.

The challenge lies in what the market calls the stablecoin sandwich. This phenomenon occurs when the process of entering and exiting fiat currency is slow. The speed of the core transaction loses its utility if the ends of the system do not keep pace.

To solve the problem, it is necessary to connect real-time payment systems to digital asset exchanges. The infrastructure needs improvements so that participants can use the technology effectively. The use of smart contracts emerges as an alternative to automate corporate payments under specific conditions.

Interest in these assets grew after the creation of the GENIUS law in the United States. Mastercard strengthened its presence in the sector with the purchase of infrastructure provider BVNK in August. Both companies launched a global platform to integrate traditional currencies and stablecoins into a single interface.

The company seeks to integrate blockchain data and identity to increase trust in operations. In markets like Singapore, the focus of adoption tends to be corporate due to the high efficiency already present in retail payments.