Stablecoins: A Solution to Venmo Fee Hike for US Freelancers?
2 min read
Stablecoins: A Solution to Venmo Fee Hike for US Freelancers?
In light of Venmo’s recent decision to hike transaction fees, Dan Romero, co-founder of Farcaster, suggested that freelancers in the U.S. might benefit from a stablecoin payments app. Venmo’s new fee structure has stirred considerable unrest among its user base. Romero highlighted stablecoins as a potential fix for individuals who earn income reported on the U.S. Internal Revenue Service Form 1099, encompassing freelancers and independent contractors.
Financial analyst Ross Hendricks weighed in on the issue, commenting that Venmo’s decision was akin to PayPal activating a “monetization switch” for the service. A user responded to Hendricks’ observation with a brief but impactful statement: “Crypto fixes this.” Hendricks was quick to counter, questioning the feasibility of current cryptocurrency transfer solutions.
Dan Romero, who also co-founded the Farcaster decentralized social network, posed a critical question: “What is the consumer app with hundreds of millions of users that enables seamless, instant crypto transfers free of charge?” Reacting to Romero’s query, Brian Armstrong, co-founder and CEO of Coinbase, mentioned that the stablecoin Circle USD (USDC) on the Base platform was attempting to address this need.
Romero responded to Armstrong’s comment succinctly with the word: “Based,” signaling his approval. Hendricks, Voiced some reservations. While he acknowledged that changes could occur, he was skeptical about USDC being used for daily transactions via Coinbase, implying that it might not offer a superior alternative to traditional payment services.
The conversation continued as another user pointed out the business potential, noting, “You just described a great business opportunity. Why pay 2.99% when you can pay nothing?” This comment underscored growing frustration with traditional payment fees and sparked further discussion on crypto-based alternatives.
This dialogue comes shortly after a significant update from Coinbase. On May 23, Coinbase Chief Legal Officer Paul Grewal announced that XRP would once again be available for trading in New York. XRP had been delisted from many centralized exchanges, including Coinbase, following a lawsuit filed by the United States Securities and Exchange Commission (SEC) against Ripple Labs in 2020. The SEC accused Ripple Labs of selling unregistered securities.
The legal battle saw a turning point in 2023 when Judge Analisa Torres ruled that secondary sales of XRP do not classify as securities transactions. This ruling prompted several centralized exchanges to reconsider and eventually relist XRP, marking a shift in the broader crypto landscape.
As freelance workers and financial analysts alike grapple with Venmo’s fee changes, the conversation continues to veer towards stablecoins and other cryptocurrency solutions. The prospect of stablecoin payments, combined with recent legal developments in the cryptocurrency world, hints at a potential shift in how freelancers might manage their finances in the future.
Great, another way for a big company to take more of our money. Not sure if stablecoins are the answer, but somethings gotta give.
Looks like stablecoins could be the answer! Thanks for the heads-up, Dan Romero!
Venmo just keeps digging into our pockets! Stablecoin might be the way to go, but setting it up doesn’t seem straightforward. 🪙
Finally, an alternative to high transaction fees. Stablecoins could be the future! 💼🚀
Romero’s ideas are interesting, but let’s be real—the average person isn’t ready to jump into the crypto world for payments. Venmo needs to get their act together.
Dan Romero’s stablecoin app idea could save freelancers a lot of money!
Excited about the potential of stablecoins in everyday transactions! Thanks for the insights, Dan Romero!
Sad to see Venmo joining the money-grab club. We need alternatives like stablecoins, but with better public education and lower barriers to entry.
Venmo’s loss could be crypto’s gain. Stablecoins for daily transactions make so much sense!
Venmos decision to hike fees is just greedy. Stablecoins might be promising, but there are still too many obstacles for the average freelancer to easily switch over.
Big thanks to Dan Romero for highlighting stablecoins! Our wallets will thank you! 🙏💸
Yet another hit for the gig economy. If I have to switch to stablecoins, there better be an easier way to manage them. Venmo, youre pushing us to the edge here.
This fee hike by Venmo is a real bummer. Freelancers are already dealing with so much, and now this?
Imagine no more transaction fees! Stablecoins could really change the game. 🤑🎉
The thought of paying nearly 3% per transaction on Venmo is stressful, even if stablecoins offer no fees, switching isn’t easy!
Why stick with hefty fees when stablecoins offer a seamless solution?
Dan Romero’s suggestion on stablecoins is the innovative thinking we need! 🙌💰
Dan Romero’s stablecoin app idea could revolutionize freelance payments! 🙌🤔
Hiking transaction fees on Venmo? Sounds like they’re trying to push us to look elsewhere. Stablecoin apps might be worth exploring, but there’s still a trust issue.
Dan Romero is spot on! A stablecoin payments app could be a game-changer for freelancers!
It’s time for a change! Stablecoin payments sound like the way forward for freelancers.
This feels like Venmo pushing its users to the brink. I appreciate the idea of stablecoins, but it’s still a confusing territory for many freelancers.
Excited to see stablecoin solutions for freelancers! Dan Romero has the right idea! 🌟🆓
Bring on the stablecoins! Freelancers need this kind of innovative solution.
This is exactly the innovation we need in payments! Stablecoins to the rescue! 💡💰
Stablecoins for freelancers sounds like a fantastic idea! Great thinking, Dan Romero!
Venmo’s fee hike is a slap in the face. I’m skeptical of stablecoins solving this anytime soon. Why is it so hard to get a fair deal with these payment services?