According to a new metric co-developed by Visa Inc., over 90% of stablecoin transaction volumes are not attributed to genuine users, indicating that these crypto tokens may have a long way to go before becoming widely adopted for payments.

Visa and Allium Labs have introduced a dashboard to filter out transactions initiated by bots and large-scale traders, revealing that out of a total of $2.2 trillion in transactions in April, only $149 billion came from “organic payments activity,” as per Visa’s data.

This finding contradicts the argument made by proponents of stablecoins, who claim that these tokens, tied to assets like the dollar, are poised to revolutionize the $150 trillion payments industry. Despite fintech giants like PayPal Inc. and Stripe Inc. venturing into stablecoins, challenges remain in ensuring their widespread acceptance and usability.

Pranav Sood, executive general manager for EMEA at payments platform Airwallex, views this data as indicating that stablecoins are still in their early stages of development as a payment instrument. While they hold long-term potential, the immediate focus should be on improving existing payment systems.

Accurately tracking the value of crypto activity using blockchain data has always been difficult, with estimates often differing significantly from actual figures. Visa’s head of crypto, Cuy Sheffield, highlights the issue of double-counting transactions with stablecoins, further complicating measurement efforts.

Companies like Visa, which processed over $12 trillion worth of transactions last year, could face challenges if stablecoins become widely accepted. Despite predictions of substantial growth in the total value of stablecoins in circulation by 2028, there is still uncertainty surrounding their mainstream adoption due to usability concerns.

Although PayPal and Stripe have introduced stablecoin-related solutions, Airwallex has observed limited demand from customers, indicating that many still find the technology not user-friendly enough. Overcoming these barriers is crucial for stablecoins to gain broader acceptance, especially considering the continued reliance on traditional payment methods like checks in certain markets.