Tag Archives: KYC

Stablecoins: Near-Term Predictions

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12 Page Blog

Key Themes

  • Stablecoin growth is booming in the areas of remittance, cross-border, disbursement, and B2B supply chain. 

  • Card volumes face no threat as they remain the “last mile” of use and an economic model for stable coin issuers. 

  • The STABLE and GENIUS acts are driving significant central bank discussions, with divergent views on response in Europe. 

  • Asia is developing differently, with the effectiveness of Ukraine sanctions and fear of dollarization driving central banks to a CBDC approach.

  • The value of any network corresponds to the combined investment made by all parties around it. Stablecoin is the fastest-growing network and at the core of most FinTech investments.

  • PayPal, and legacy remittance providers are under a substantial near term threat

  • Expect big tech and mobile platforms to support stablecoins in new ways (ex recurring payments and emerging markets). 

  • A small number of low profit Banking segments are also at risk, as Stablecoin issuers become banks and threaten niche payment providers like Cash App, as well as specialists in categories like MSB, NBFCs, ELMI, …etc.

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Trust Assertions – Identity Will Define the Future of Payment Networks

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©Thomas Noyes, May 2022

My blogs last week have me thinking about the changes going around in Identity. This will be a long blog. Typo warning.. I’m still revising. 

The number one thing I look for in payments is change: volume, technology, behavior, data, …etc. Effective networks are notoriously hard to change, but they are also very resilient (see blog). Small changes in data flows, can lead to significant changes in margin and “control”.  Margin and control guide both public and private investment (see Evolution of Visa and Mastercard Beyond Payments). 

Identity is our most important asset — it’s literally who we are. 

Our complete “identity” is known to no one, as each entity we interact with has a partial view of us based upon what we chose to give them and what they observe. How others accept and validate our identity, and how others share insight about us, is the core of payments (see Trust Networks and Authentication in Value Nets). The structure, exchange, and assertions associated with identity are defining: web3, DeFi, Crypto, CBDCs and the Metaverse. These are not separate silos, but rather overlapping ecosystems that must interact, thus the importance of bridging identity across networks/domains (see Blog – Trust is domain specific). 

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