coolhead
Great Supremacy Member
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Crcl earns most of its revenue thru interest yields on its stablecoin. Other than being an issuer, it is intending to be a payment network.
https://thedefiant.io/news/tradfi-a...to-rival-visa-f5e45238?utm_source=chatgpt.com
Critics of the current payment giants visa and master say that it is very expensive compared to crypto transactions. While that is true given MDR to merchants can be from 2-5%, it is actually a sustainable, competitive and scalable business model for innovative payments within the credit card payments.
I wouldn't say crcl is another layer to settlements, given that it operates on a different spec from master/visa. Master/visa typically operates on an authorization-settlement model. In contrast, crcl is its own real-time settlement. That being said, ISO 20022 is being geared to replace legacy ISO 8583 for legacy credit payments.
There are 3 things CRCL must overcome to compete with master and visa:
1) build a sustainable business model while being more competitive and the ecosystem where all entities benefit: banks, acquirers, merchants, consumers.
2) prevent visa/master from entering the stablecoin space. However, visa and master are also vested in the stablecoin space so it will be like a case of David vs Goliath.
3) reduce the friction to crypto for the end users: this includes merchants and consumers where stablecoins can be used interchangeably with merchant-owned stablecoins and seamless consumer experience for the consumer.
If there's one thing I agree with you, the current price of crcl is total hype.
