What allows for true peer-to-peer payments?

True peer-to-peer payments facilitate direct transactions between individuals without the need for intermediaries, such as banks. In this context, stablecoins enable such transfers effectively.

Stablecoins are digital currencies designed to maintain a stable value relative to a fiat currency or other assets, minimizing the volatility typically associated with cryptocurrencies. When individuals use stablecoins for transactions, they can exchange value directly, leveraging blockchain technology to execute these transfers. The decentralized nature of stablecoin transactions eliminates the need for traditional banking intermediaries, allowing users to connect directly, enhancing the payment experience by making it quicker and less costly.

The other options imply the involvement of intermediaries or may not support the principles of peer-to-peer transfer as effectively. For instance, banking intermediaries inherently create a layer between the payer and the payee, which contradicts the concept of pure peer-to-peer transactions. Similarly, prepaid debit cards involve a financial institution to issue and manage the card, which once again does not fulfill the criteria for direct peer-to-peer payments. Lastly, while cash transactions do facilitate direct exchanges, they lack the broader functionality and convenience of digital peer-to-peer payments enabled by technology and cryptocurrencies.