Analysis: Stablecoins still primarily revolve around crypto trading, and payment applications have yet to make a breakthrough

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ME News Report, April 13 (UTC+8), Kansas City Federal Reserve released the latest analysis, pointing out that currently stablecoins are mainly used for cryptocurrency trading and providing liquidity support, and have not yet become widely adopted payment methods. The report shows that about 49% of stablecoin supply is used for trading liquidity within centralized exchanges and decentralized finance protocols, 29% for transfers between wallets or internal fund operations, and 21% are idle, with less than 1% actually used for real-world payments. As they are designed as native tools for cryptocurrencies, stablecoins face limitations in cross-chain interoperability and connection with traditional financial systems, thus failing to be widely applied in payments. Although Mastercard and Visa plan to support related technologies by 2026, the development of stablecoins in the payments sector is still in its early stages, requiring solutions for interoperability, compliance, and identity verification. (Source: MLion)

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