Stablecoins feature 24/7, near-instant cross-border settlement, but retail consumers are waiting for guarantees against fraud and disputes.
Stablecoins won’t unseat incumbent payment platforms, including Visa and Mastercard, until the blockchain tokens feature robust consumer protections, according to Guillaume Poncin, chief technology officer of payment company Alchemy.
Traditional payment companies offer chargebacks, fraud protection, disputed transaction resolution and credit features that consumers have come to expect. Stablecoin projects must integrate these features to attract the everyday person, Poncin told Cointelegraph.
Consumer protection features can be embedded directly in smart contracts, while stablecoin issuers and payment platforms can fund their own insurance pools for payouts in cases of fraud, Poncin said. He said traditional payment rails and stablecoins will merge:
