Crypto as a Solution: Farcaster Co-founder Suggests Stablecoin Payments after Venmo Fee Hike
Summary:
Amidst community backlash over Venmo's transaction fee hike, Farcaster co-founder Dan Romero proposed a stablecoin payments app as an alternative for US-based freelancers and independent contractors. The discussion saw Coinbase CEO, Brian Armstrong, suggesting Circle USD (USDC) on Base as a feasible solution for crypto transfers. Meanwhile, the dialogue also highlighted skepticism over the practicality of these solutions. This conversation took place against the backdrop of Coinbase reintroducing XRP trading in New York, following its 2020 lawsuit and subsequent delisting.
The increase in transaction charges for PayPal's mobile payment service, Venmo, has created discomfort amongst the public. Commenting on the development, Farcaster co-founder, Dan Romero, has proposed "a stablecoin payments app" as a feasible solution, particularly for American freelancers engaged on a 1099 basis, which includes independent contractors.
Ross Hendricks, a financial analyst, took to X post on May 23 to express his viewpoints on Venmo ramping up charges, remarking it as PayPal switching on the monetization mode for Venmo. An X user resonated with the sentiment by remarking "crypto fixes this", advocating for cryptocurrency transfers as an alternative, which was however questioned by Hendricks.
To address Hendricks' query on an existing mass consumer app that enables instant and free crypto transfers, Brian Armstrong, the CEO and co-founder of Coinbase, pointed at Circle USD (USDC) on Base as a potential solution. Armstrong's point was lauded by Romero, who is also a former senior executive at Coinbase, using the term "Based" to summarize the response.
Despite the pro-crypto conversation, there existed skepticism, with Hendricks raising doubts over the practicality of using USDC through Coinbase for routine transactions. Another X user identified the issue as a potential business opportunity underlining that nobody would willingly choose to pay 2.99% when they could possibly pay nothing.
This dialogue occurs against the backdrop of Coinbase's Chief Legal Officer, Paul Grewal announcing the restart of XRP trading on Coinbase in New York on 23rd May. Post SEC's 2020 lawsuit against Ripple, alleging it for selling unregistered securities, many popular exchanges, including Coinbase, removed XRP. However, centralized exchanges started reinstating the contested digital asset following Judge Analisa Torres's 2023 verdict declassifying secondary sales of XRP as security transactions.
Published At
5/24/2024 2:22:32 PM
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