The downstream effects of the GENIUS Act have started to come into effect.
Among other things, the GENIUS Act provided regulation frameworks for stablecoins, digital currencies that are equivalent in value to the traditional currency they are associated with.
Outside of being exclusively digital, the primary difference between stablecoins and fiat currencies like the U.S. dollar is that a USD-linked stablecoin is not issued by the U.S treasury. They are instead issued by third party companies that are subjected to regular auditing and required to hold large cash or asset reserves, as per the GENIUS Act.
One such company is Circle Internet Group (NYSE: CRCL), whose recent stock market success and mainstream media attention is indicative of a turning tide in the cryptocurrency payment world.
Circle is the issuer of USD Coin (USDC), one of the largest U.S. Dollar backed stablecoins, also operates a stablecoin payment network. The company debuted on the New York Stock Exchange on June 5th at $31 per share, and immediately surged. The stock closed at $83.23 on the first day, and ended its first week at $123.49.
The stock continued to skyrocket until June 23rd, when it reached its peak of $263.45. Over the next two months the stock slowly returned to earth and stabilized. It now sits at a price of $126.98, well above its initial price of $31.
Circle’s stock market success reflects growing market confidence in emerging stablecoin payment technology, which has the potential to have significant impacts on everyday consumers and merchants alike.
Other mainstream payment processing companies, such as PayPal, Stripe, and Coinbase, have also begun to offer stablecoin payment processing services. PayPal, like circle, has even issued its own stablecoin pinned to the U.S. Dollar, PayPal USD (PYUSD).
Increasing merchant acceptance of stablecoin payments has huge implications for American consumers, and has the potential both sellers and buyers money.
Stablecoin payments on the lightning network have microscopic transaction fees. Broad acceptance of stablecoin payments among merchants would provide competition to Visa and Mastercard, who use their current monopoly on the payment network market to charge astronomical transaction fees.
For a full breakdown of the evolving cryptocurrency payment landscape, click here.
