Centralized stablecoins are undermining Bitcoin payments

Bitcoin payments are becoming less popular compared to stablecoins, which are centralized and tied to fiat. While Bitcoin may have been intended as a decentralized payment network, stablecoins are taking over the cryptocurrency payment landscape.

Recently, The Century Club in London, a private members’ club, installed BTC terminals for members to pay their bills using cryptocurrency. This move reflects the growing interest in digital currencies among certain demographics.

Tony Pearce, CEO of Web3 company Reality+, notes that stablecoins, like USDC and USDt, are becoming more widely used for everyday transactions compared to Bitcoin. In fact, stablecoins settled more than $10.8 trillion worth of transactions in 2023, while Bitcoin transactions have stalled.

Stablecoins offer advantages such as price stability and faster transaction times on efficient blockchain networks like Ethereum and Tron. However, they are centralized projects that require more trust from users compared to decentralized Bitcoin.

Bitcoin’s high transaction fees and slow block times have made it less practical for small-value retail payments. On the other hand, stablecoins benefit from user-friendly wallets and simple fiat on- and off-ramps, making them more accessible for the average user.

As stablecoins continue to gain popularity for everyday transactions, the future of Bitcoin payments remains uncertain. While stablecoins offer convenience and efficiency, Bitcoin’s decentralization and independence are still valued by many users. Ultimately, the choice between Bitcoin and stablecoins for payments comes down to individual preferences and priorities.