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Improving stablecoin UX and trust requires merchants to verify crypto wallet addresses, look for security indicators like hardware wallet support and ENS (Ethereum Name Service) domain names and comply with local KYC/AML laws for higher-value transactions

June 2, 2025 //  by Finnovate

Stablecoins aim to solve the crypto payments bottleneck, but bridging this gap requires resolving significant infrastructure and user experience challenges. Despite their simplicity on the surface, stablecoin payments involve a complex back end.  Despite the technological advances, stablecoins are not immune to threats, and their rise has attracted new classes of digital fraud. For consumers, one of the biggest risks is fake apps or phishing links that mimic real wallets or payment interfaces. Merchants need to educate their customers — and themselves — on how to verify wallet addresses and look for security indicators like hardware wallet support and ENS (Ethereum Name Service) domain names. Consumer friendly also doesn’t mean compliance light. Merchants accepting stablecoins must ensure they comply with local know your customer/anti-money laundering (KYC/AML) laws, especially for higher-value transactions. “Even if stablecoins are the preferred medium for a lot of criminal activity, creating a regulated environment where these companies can operate in conjunction with law enforcement is probably a positive,” Dan Boyle, partner at Boies Schiller Flexner, told. The bottom line is that, for consumers and merchants, the potential shift stablecoins represent isn’t just technological — it’s psychological. Trust, familiarity and education are critical. And while today’s stablecoin experience is faster and cheaper than legacy systems, the true breakthrough will come when it becomes invisible.

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