After Venmo announced an increase in transaction fees, Dan Romero, co-founder of Farcaster, proposed the idea of a stablecoin payments app for US-based freelancers, citing dissatisfaction within the community. Romero highlighted the need for a solution tailored to workers classified under the IRS Form 1099, such as freelancers and independent contractors.
Financial analyst Ross Hendricks commented on Venmo's fee hike, suggesting that PayPal had activated a revenue-generating mechanism for Venmo.
In response to Hendricks' post, one user redirected the conversation to crypto with the phrase "Crypto fixes this." However, Hendricks questioned the practicality of current cryptocurrency transfer methods, prompting Farcaster's co-founder to inquire about a consumer app with widespread adoption that offers seamless, fee-free crypto transfers.
Brian Armstrong, CEO of Coinbase, jumped into the discussion, mentioning that the USD Coin (USDC) stablecoin on Base is attempting to address this need. Romero expressed approval of Armstrong's input with a simple "Based."
Despite Armstrong's assertion, Hendricks remained skeptical about using USDC for everyday transactions due to its reliance on Coinbase. Another user saw this skepticism as an opportunity for a new business model, suggesting that avoiding transaction fees charged by platforms like PayPal and Coinbase could be an attractive alternative.
The conversation shifted to Coinbase's decision to resume XRP trading in New York following a legal dispute between Ripple Labs and the SEC. After a court ruling determined that XRP transactions did not constitute securities transactions, centralized exchanges, including Coinbase, began reinstating support for the digital asset.
May 2024, Cryptoniteuae