jesse.base.eth 🔵 on Warpcast

ST pfp

This might sound like a weird question but bear with me please: Why do we want USDC retail payments (esp. in countries like the US?) Not benefits. I'm talking about bigger strategic goals here. What happens when daily consumer payments happen w/ stablecoins? https://x.com/jonwu_/status/1823367216797986854

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jesse.base.eth 🔵 pfp

jesse.base.eth 🔵

1. fees for small businesses should go from ~3-4% to <1%. the average small business *total* margin is 3-6%, so this is a doubling of their margin. 2. choice for small businesses (POS, accounting, tax) and consumers (wallets, rewards) should dramatically increase bc it's all in an open ecosystem vs. locked into a specific platform 3. UX for small businesses and consumers should get 10x better bc we'll have so many more people building great solutions on top of the open platform

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ST pfp

Thank you for the thoughtful response.

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rafa pfp

I would add, it opens up peer-to-peer international trade which is very difficult because banking systems in different regulatory systems don’t interact easily / cost a lot.

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Stas pfp

Imho onchain UX is arguably on par with 3D Secure atm Both leave room for improvements, but one of these is just a terrible idea to keep entertaining

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aferg pfp

@aaronrferguson.eth

Awesome points! Would businesses be better protected from chargebacks too?

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Matt pfp

Can i play devil's advocate. I don't disagree with any of your points however until anonymous transactions exist, do consumers want every transaction (and historical transactions connected to the wallet) exposed to anyone? I would also argue that while Usd stablecoins may offer a more open ecosystem they still have a central entity that can block / hold funds and censor transactions. Would a decentralised stable coin not be preferable?

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Simon Taylor pfp

Is that fee reduction just moved? I.e. so long as you're in the stablecoin and Tokenized world you're lower fee. But as soon as you interact with tradfi the cost comes back. That does become an argument to go all in on tokens but that's unrealistic for most non crypto native SMBs

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John Jenkins pfp

Everything here is correct. The main issue for mainstream small business adoption is the on-ramp for their customers. If your typical daily user base doesn’t interact with a USDC stable coin how will they bring their funds onchain in a quick, cheap and intuitive manner? I’d love to be chasing this in a market where USDC are highly desirable by the customer base. Then what you’re saying here falls easily into place.

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Philip Decker pfp

Yes. All merchants would save on cc fees. Buuut….payments is all about trust and incentives. Crypto obvs lacks trust, but table that. Incentives drive action. The discount rate (ie CC fee merchants pay) is what funds rewards/points, and points drive consumer usage of CCs. Flywheel. Take away the fees and you take away points and then you need to find a new incentive to get people to pay with ur product. Plus, merchants want high spending consumers. CCs with hefty rewards bring those high value consumers to the merchants door. Rn we need to first build trust with consumers/merchants, and properly incentivize people to pay with crypto.

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Mack pfp

It feels like a no brainer. Retail should be begging for crypto with how crazy credit card fees are

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Greg Reveret pfp

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