Many companies around the world are adopting stablecoin mass payment services, which help them significantly optimize operations in an increasingly competitive, globalized market. However, some myths have arisen surrounding this financial service. Below, we’ll explore the most common myths about mass payments in stablecoins.
Eliminates the Need for Intermediaries
Many people and companies assume that mass payments in stablecoins completely eliminate the need for intermediaries, since transactions are executed directly on the blockchain, independent of traditional financial systems. However, the reality is different: this type of payment doesn’t eliminate the intermediary ecosystem, but rather reconfigures it, as traditional players don’t disappear; they simply change their role and, in most cases, become more efficient.
Intermediaries responsible for key functions (asset custody, regulatory compliance, and liquidity provision) remain indispensable, especially in institutional environments where proper risk management is critical.
Stablecoins are volatile
Some people think stablecoins are volatile like other cryptocurrencies; however, the main stablecoins (USDC, USDT, etc.) maintain a very stable 1:1 peg to the US dollar. Depeg events (when they temporarily lose their peg) are rare and usually last only a few minutes or hours. All of this makes stablecoins more stable than other cryptocurrencies like Bitcoin or Ethereum, which are more volatile.
Settlements are always instant
Some people and companies believe that when making mass payments in stablecoins, settlements are always instant. However, even though these types of transactions settle in seconds or minutes, they are not always instantaneous, as settlement depends on both proper use of the blockchain and network congestion.
At this point, we must consider that using an incorrect or incompatible blockchain network can result in delays or the loss of funds. Furthermore, if a stablecoin needs to be converted to fiat currency (to settle a bulk payment), delays may occur due to network issues at traditional financial institutions or regulatory problems within the traditional banking system.
These payments are related to criminal transactions
Some people believe that mass payments in stablecoins are related to criminal transactions and are easy to conceal. However, the truth is that bulk stablecoin payments are transactions that operate within the blockchain network. Therefore, they are constantly and permanently recorded in public ledgers, offering greater transparency and traceability than cash or traditional bank transfers.
Adopting Stablecoins for Payments Is Risk-Free
Many people believe that adopting stablecoins for mass payments is risk-free (as with other cryptocurrencies). However, the truth is that there are significant differences in backing and governance models. Fully reserved coins, such as USDC or USDT, differ significantly from algorithmic coins, which are not suitable for large-scale business payments.
However, while stablecoins don’t present the same volatility risk as other cryptocurrencies, companies using stablecoins for bulk payments must manage the risk of mass execution, which could force the issuer to sell illiquid reserve assets at a discount, or the risk of the central company managing the reserves (Circle/USDC or Tether/USDT) going bankrupt or mismanaging the funds.
What are your thoughts on this? Do you know of any other myths about mass payments in stablecoins?
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