Can Stablecoin Save America’s Freelancers From Venmo’s Pay Trip? Industry weighs
Following the news of mobile payment service Venmo's transaction fee increase, Farcaster co-founder Dan Romero proposed a “stable coin payments app” for freelancers in the United States. The PayPal-owned mobile payment service's new payment structure has sparked community outrage.
Romero's statement offered stablecoins as a solution to “1099s.” This refers to employees who file under US Internal Revenue Service Form 1099 – including freelancers and independent contractors.
Financial analyst Ross Hendricks commented on Venmo's increase in transaction fees on May 23 in an X-Post, “[PayPal] I just flipped on the monetization switch for Venmo.
An X user responded to Hendrix's post, prompting him to switch his narrative to crypto with three words.
“Crypto will fix this.”
This statement was soon countered by Hendricks, who questioned the current state of cryptocurrency exchanges. The founder of Farcaster, a decentralized social network, asked:
“What is a consumer app that enables fast, seamless crypto transfers with hundreds of millions of users?”
Brian Armstrong, co-founder and CEO of Coinbase, was quick to respond at the event, saying that the USD Coin (USDC) stablecoin on Base is “taking a hit.”
Romero Armstrong, formerly a senior executive at Coinbase, sums up his response to the discussion.
“established”
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Hendricks suggested that “maybe things will change,” but expressed his skepticism, considering USDC is sent “for daily transactions” through Coinbase.
This doubt was followed up by another X user:
“You've described a great business opportunity. Yes, sending money on Venmo or sending money on Coinbase to rob PayPal. Why pay 2.99% if you can't pay anything?”
The discussion follows Coinbase's Chief Legal Officer Paul Grewal's announcement on May 23 that XRP (XRP) was trading again on Coinbase in New York.
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