Stablecoin Leading the Development of E-Commerce

Today, businesses face a prisoner's dilemma: while cryptocurrencies have some benefits, including lower fees, faster transactions, and global accessibility, they also pose risks such as uncontrolled volatility and security concerns — both of which remain very important to consumers. This is confirmed by a study published in mid-2022, which shows that 50.6% of online shoppers view cryptocurrency as the future of payments, while the latest survey of 4,000 people in the United States proves that less than 1% identify cryptocurrency as their preferred online payment method. In this context, the main questions arise: Do e-commerce businesses truly integrate cryptocurrencies as a payment solution or is this just a temporary trend? Can stablecoins provide a more reliable path? Let’s analyze and explore the key things that e-commerce businesses should consider regarding the adoption of cryptocurrencies. The position of cryptocurrency in e-commerce today There are some platforms that use digital assets as a means of payment. We can see from a recent study that the e-commerce and retail sector has the highest number of companies providing cryptocurrency payment services, with a total of 76 enterprises successfully leveraging this technology. In fact, the integration of cryptocurrency into business processes has been notable, although it is still not widespread, indicating that the adoption of cryptocurrency in e-commerce is still in its early stages. Although the adoption of cryptocurrencies by e-commerce businesses is still new, companies with a global customer base have begun to benefit from cryptocurrency transactions. However, this primarily applies to large companies, as 85% of them, earning over 1 billion dollars a year, have adopted cryptocurrencies. In contrast, for small to medium retailers with revenues ranging from $250 million to $1 billion, only 23% accept payments in cryptocurrency. Nevertheless, they easily accept payments from international customers without having to deal with exchange rates, lengthy transaction processing, and high fees, unlike traditional payment methods. For example, one of the e-commerce platforms, Shopify, is actively integrating cryptocurrency payments and allowing merchants to accept digital transactions from customers worldwide through global payment gateways. And with the recent positive sentiments from governments, such cases are expected to only increase. However, there are still some challenges that businesses face — the value of some cryptocurrencies can fluctuate significantly in a short period, which is a major concern for traders due to the inability to establish stable pricing policies. In this regard, stablecoins can be seen as a way out for companies in the e-commerce sector. Stablecoin — the most viable option for e-commerce? Stablecoins are one of the best options adopted by e-commerce companies because they preserve the benefits of cryptocurrency payments while offsetting volatility risks. In addition to minimizing risks, stablecoins are also more transparent and secure for the public, helping to increase trust. For example, Circle, the issuer of USDC, is obligated to provide monthly attestation reports conducted by independent accounting firms, which further enhances user confidence in the transparency of this coin. The potential for widespread adoption is also determined by ongoing regulatory changes, which play a crucial role in establishing clear guidelines. For example, recently, the U.S. House of Representatives presented an updated version of the STABLE Act, significantly amending the draft from last month. This new version aims to support stablecoins by introducing new compliance mechanisms, expanding regulatory oversight, and potentially creating a federal framework for the issuance of payment stablecoins. Therefore, as regulations are formed, e-commerce companies may become the first to offer stablecoins as a means of payment to stay ahead in the market, and this could significantly impact the growth of the industry and attract considerable attention. In addition, stablecoins can be integrated into existing payment services — for example, PayPal has started to adopt cryptocurrencies as part of its service, and we are likely not to have to wait long for others to follow this trend. The main reason is that businesses should not have to rebuild their payment infrastructure to successfully implement stablecoins — it is quite easy to do. Moreover, by using stablecoins through such robust platforms with advanced cybersecurity mechanisms, businesses can minimize risks and prevent fraud. Finally, stablecoins can open up new market access for consumers in areas with limited banking infrastructure. In 2021, in its summary, the European Parliament emphasized that stablecoins could positively impact global trade, facilitating the development of global payment agreements and enhancing financial inclusion in both developed and developing countries. Therefore, this affirms that the adoption of stablecoins by e-commerce businesses can play a crucial role in expanding their reach. The last line The integration of cryptocurrency payments into e-commerce should not be seen as a trend to pursue, but rather as a strategic move that can transform digital transactions. We can expect that within 5–10 years, stablecoins may become the standard for cross-border payments and change the way businesses and consumers engage in digital transactions. Stablecoin, consistent and backed by assets, provides businesses with protection against excessive volatility, seamlessly integrating with existing payment services and expanding into areas with limited financial infrastructure. However, companies should consider robust security mechanisms, transaction management, and regulatory compliance to effectively leverage this payment method.