Hassan Maishera
Senior experts within the crypto and regulatory industries met at the Blockchain Expert conference in Tel Aviv to discuss the future of digital payments. Most of the experts believe that in a few years, all payments globally will be instantaneous.
Stablecoins Lead the Charge in Blockchain Transfers
While speaking at the event, Idan Oferat, co-founder of Fireblocks, revealed that
“Most transactions processed by Fireblocks, and blockchain in general, are predominantly in USDT and USDC.”
Fireblocks is a leader in this category, processing over $3 trillion in client transfers. Stablecoins account for more than 50% of that sum—up from 45% earlier this year.
"Approximately 10% of all stablecoin transactions originate from payment companies, and this use case is expected to grow significantly in the coming years," Oferat added.
Bitcoin No Longer the Dominant Force in Payments
Payment industry expert Daal Shalev pointed out that,
"Bitcoin started as a revolutionary tool for cross-border payments, but it has lost its edge in this domain as fiat systems have advanced. Bitcoin remains a store of value, but when it comes to payments, no one wants to use it anymore."
Shalev revealed some insights about central bank digital currencies (CBDCs): "The Bank of Israel has stated that it won’t launch a CBDC until other nations do so first. Former U.S. President Donald Trump famously declared, 'Not over my dead body,' regarding CBDCs, which has significantly set back Israel's progress in this space."
PayPal's PYUSD – A "Supercharged" Dollar
At the conference, Yonatan Yochpaz, Head of Blockchain and Digital Currencies at PayPal, presented PYUSD, the company’s stablecoin launched in 2023.
"When you convert dollars to PYUSD, you're giving them superpowers—it becomes instant, with no days-long settlement waiting, and cheaper to transfer because it’s on the blockchain."
Yochpaz added that PayPal’s PYUSD is backed 1:1 by dollars held in a trust account, is protected against bankruptcy, and is one of the few stablecoins insured by the New York Department of Financial Services (NYDFS).
Banks Facing Challenges in the Digital Era
Shalev also commented that,
"Banks are increasingly aware of the significant challenges posed by regulations requiring them to modernize. Most bank software systems still rely on outdated XML frameworks and legacy infrastructure. But customers now expect to send money through fast, cheap, and near-zero fee transactions."
Shalev further elaborated on the transformative potential of CBDCs:
"We now have a ruler to measure the quality of money—how quickly it devalues or loses utility. CBDCs change the game entirely. Imagine money with an expiration date, limited to specific geographic regions, or restricted for use by certain individuals. These are significant monetary implications. Governments are drawn to CBDCs because they offer greater power and control."
Crypto to Boost Payment Innovations
In a concluding comment, Shalev pointed out that cryptocurrencies could play a crucial role in payment innovations. He added that,
"Cryptocurrency is one of the most significant drivers of payment innovation. SWIFT recently introduced a new messaging standard, and we now have laws governing payment service providers—all of these developments are thanks to crypto. As citizens, this competition is good news; it means we'll ultimately benefit."
