Stablecoins provide consumers, notably Americans, with a means to avoid the difficult transaction fees of the financial industry.
As rising prices have compelled consumers around the globe to reduce their expenditures and find new methods to cope with the increased cost of living, consumers are relying on credit cards even more than they did previously.
With 46% of credit cardholders carrying month-to-month debt, up from 39% in 2022, an increasing number of Americans are unable to pay their credit card expenses in full each month. The Federal Reserve Bank of New York highlighted in a recent report that the current 15% year-over-year increase in credit card balances represents the largest increase in more than two decades.
It is undeniable that ordinary people are increasingly unable to make credit card payments as prices rise across the board. Payments titans such as PayPal have been taking advantage of consumers, and we have all let them get away with it.
American businesses pay up to seven times more in credit card transaction fees than European businesses and five times more than Chinese businesses, a cost that is directly passed on to consumers.
Electronic payments are indeed convenient, and they have solved many of the cross-border issues that a cash-only mentality created. However, consumers pay significantly more for this convenience than they may have been led to believe, and they may not even be aware of it.
In 2023, the technology at our disposal will be so advanced that centralized services that restrict the ability of merchants or customers to send and spend money should no longer exist.
Distributed solutions can save consumers and merchants more money by replacing antiquated systems and traditional payment providers, which serve monopolies rather than hard-working average people. Volatility cannot be a factor if this is to be accomplished securely and transparently, so traditional cryptocurrencies cannot be the solution. However, stablecoins may be.
Read Also: Coinbase estimates that crypto might remove 97% of traditional remittance fees
Disclaimer: The information provided in this article is for informational purposes only and should not be construed as financial or investment advice. Cryptocurrency investments are subject to market risks, and individuals should seek professional advice before making any investment decisions.
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