Why You Might One Day Use Stablecoins Instead of Credit Cards or Bank Accounts
As you shop today for a new laptop or a pair of shoes, you’re accustomed to seeing a variety of payment options at checkout: credit or debit cards, PayPal, Apple Pay, or buy now, pay later services. However, in the near future, you could encounter a new alternative — stablecoins.
The Rise of Stablecoins and New Federal Legislation
Recently, President Trump signed the Guiding and Establishing National Innovation for US Stablecoins Act, known as the GENIUS Act, establishing the first clear set of federal regulations for stablecoins. Experts believe that this legislation paves the way for stablecoins, a type of cryptocurrency, to join mainstream payments and financial services.
Even if you have never engaged with cryptocurrencies before, the new law could subtly begin to change how you shop, send money, receive payments, and bank.
What Are Stablecoins?
Stablecoins are a form of cryptocurrency — digital money that operates on blockchain technology. Unlike popular cryptocurrencies such as Bitcoin or Ethereum, which are known for their volatile price swings, stablecoins maintain a stable value. This stability is achieved by pegging their value to a traditional asset, most commonly the U.S. dollar.
For example, two popular stablecoins, Tether (USDT) and USD Coin (USDC), maintain a 1:1 value ratio with the dollar: one stablecoin token equals exactly one dollar.
Because of their price steadiness, stablecoins can be used practically as currency to pay for goods and services or transfer funds without the extreme ups and downs typical of other cryptocurrencies. Further, stablecoins avoid some of the drawbacks of traditional banking.
Benefits Over Traditional Payment Methods
Himal Makwana, senior vice president at Fidelity National Information Services Inc., highlights that traditional payment cards often charge merchants fees between 2% to 3%. These costs usually pass on to consumers. In contrast, transactions made using stablecoins can cost just pennies, no matter the transaction amount.
“Stablecoin transactions mean no more waiting days for funds to clear, no exorbitant fees for sending money abroad, and no limitations imposed by banking hours,” Makwana explained. This could prove especially beneficial for international transfers and for users in regions underserved by traditional banking services.
Even before the GENIUS Act became law, stablecoins were gaining traction. According to a July 2025 report from McKinsey & Co., stablecoin daily transaction volumes doubled over 18 months, reaching around $30 billion. However, stablecoins have primarily been used within cryptocurrency exchanges and for cross-border payments rather than everyday consumer spending.
What the GENIUS Act Changes
The GENIUS Act represents the first major federal legislation to regulate stablecoins. Its passage followed the approval of the CLARITY Act in the U.S. House of Representatives, which also addresses cryptocurrency regulations.
With the GENIUS Act signed into law, the government has set clear rules on who can issue stablecoins and requires issuers to maintain a full 1:1 reserve backing. This means that for every dollar-equivalent stablecoin issued, the issuer must hold one dollar in cash or cash-equivalent assets such as short-term U.S. Treasury securities.
The law also includes marketing restrictions, preventing issuers from claiming their stablecoins are federally guaranteed or insured. It enforces anti-money laundering (AML) measures to enhance security and consumer protection.
President Trump commented that the GENIUS Act “creates a clear and simple regulatory framework to establish and unleash the immense promise of dollar-backed stablecoins.”
Experts view the legislation as a significant step toward making stablecoins safer and more widely accepted for everyday use. Erick McAfee, director of growth at the pay-as-you-go app Supert, said, “The GENIUS Act is a major step toward making stablecoins safer and more widely used.”
The Future of Stablecoins in Everyday Life
With these regulatory foundations in place, stablecoins could soon become a common payment method akin to credit cards or bank accounts. Merchants might appreciate lower processing fees, consumers could benefit from faster and cheaper transactions, and many might find a more flexible alternative to traditional banking services.
While the transition may not be immediately noticeable to all consumers, the adoption of stablecoins could gradually reshape the financial landscape, offering a new way to transact and manage money in the digital age.
As the stablecoin ecosystem evolves under this new regulatory clarity, it remains to be seen how quickly and widely they will be embraced by everyday users. Nonetheless, with daily transaction volumes growing and federal support in place, the era where you might pay with stablecoins instead of credit cards or bank accounts is approaching fast.
Related reading:
- Stablecoins go mainstream after Circle’s blockbuster IPO: Here’s what they do.