Law & Policy

Was thinking today about how the future competitive landscape of stablecoins might look like present day credit cards. They all accomplish the same basic thing, but there are rewards and incentives for use and acceptance that will make some more appealing to certain target markets.

Stablecoins will not replace other forms of payment as long as they are not treated as money for tax purposes. The tax compliance burdens create too much friction.

If stable coins become a preferred form of payment. And asset backed loans become more popular due to easier access in defi / lower interest rates. Credit cards themselves probably shrink to a smaller base of consumers without assets and end up charging higher rates. Moving more towards today’s payday loans.