Dan Romero
@dwr.eth
Loosely held view: there are three independent trends that seem favorable for stablecoins being the big winner in this crypto winter. 1. High interest rates make it a good biz 2. US federal legislation likely in the next 12 months; would make traditional FIs more comfortable 3. Developer infra being built out now
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Dan Romero
@dwr.eth
One scenario is PayPal (+Venmo) and Square (Cash App) allow for USDC send / receive. Now the fintech consumer platforms are as interoperable as Zelle. Add Stripe and Shopify as USDC friendly. Also means you could in theory create a Visa competitor based on stablecoin rails. Start with e-commerce.
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Shawki Sukkar
@shawki
would they have to kyc every user? or can they operate as a wallet?
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Dan Romero
@dwr.eth
All of those platforms already KYC every user. Cash App is already a Bitcoin wallet.
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Shawki Sukkar
@shawki
but is it possible not to and operate as a non-custodial wallet?
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Dan Romero
@dwr.eth
For what use case? A card payment needs ability to pull funds. I'm sure you can technically do it on-chain, but practically might be easier to store funds in a wallet and get the UX benefit of not having to authorize.
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Shawki Sukkar
@shawki
thinking of something like remittances sent to third world countries. like there's no app with cashapp experience that has both people who can kyc and people who can't.
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Dan Romero
@dwr.eth
Challenge with US fintechs (where all the mainstream users are) is they have to follow Reg E https://www.consumerfinance.gov/rules-policy/final-rules/remittance-transfers-under-electronic-fund-transfer-act-regulation-e So both parties need to be KYC'd.
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