Shant Mesrobian
@shantmm
Thanks to FC I've been diving a bit more into stablecoins lately and see a lot of the potential. But am I wrong in thinking that it mostly (for now) is just externalizing a lot of the costs/inefficiencies/regulations to the end user? Obtain wallet, buy coins, pay transaction fee, pay taxes, etc. Please forgive newb and/or stupid question.
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Dan Romero
@dwr.eth
Good questions. Over the next few years: 1. Wallets will be embedded in every mainstream fintech app 2. Ability to convert USD to USDC will be seamless / invisible 3. No difference in taxes with a stablecoin compared to fiat 4. Transaction fees — the onchain fee will go away (likely covered by the app) and the e-commerce fee will likely go down since Visa / MC duopoly can't extract 3%
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Henri Stern Ꙫ
@henri
Margins are going to compress heavily as the space gets more competitive, so the current costs passed on to the users are built relative to the legacy system for now, but it's an artificial floor so it'll go down as we continue to improve the available tooling!
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Koolkheart
@koolkheart.eth
Not a stupid question at all, this is actually one of the smartest ways to approach stablecoins: follow the friction. Who pays, and when? That’s where the insight lives
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Ryan
@ryanfmason
Interview @nic
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0xmons
@xmon.eth
it does have external costs to get set up arguably part of these are growing pains for anyone trying to set up a new system / payment rails the benefits ofc (once you get past them) are pretty sweet tho: - almost zero-fee foreign exchange swaps - almost zero-fee sends - fees are flat, and do not scale with size - assets can be immediately productive (e.g. rehypothecated into treasuries, onchain lending markets, etc.)
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Sher Chaudhary
@sher
sending sms messages used to have a direct cost with every message sent (externalized to end users) in the same way but it eventually became seamless and costless (eg imessage) as businesses eventually cared less about the rails and more about the social connectedness it enabled afterward in due time
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Monteluna
@monteluna
Its not only end users, but foreign shadow bank end users. I believe its less about taxes and more about externalizing default risk, and generating a new market for junk bonds to foreign stablecoin holders since US adoption is minimal. https://warpcast.com/monteluna/0xdc1c80e7
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