### Can Stablecoins Save US Freelancers from Venmo Fee Hike? Industry Weighs In
With Venmo's recent transaction fee hike, stablecoins are being proposed as a potential solution for U.S. freelancers and independent contractors. Dan Romero, co-founder of Farcaster, suggested a stablecoin payments app for 1099 workers, a group hit hard by the fee increases from the PayPal-owned service.
The idea has sparked debate on social media. Financial analyst Ross Hendricks noted Venmo’s fee hike on May 23, prompting a user to suggest, “Crypto fixes this.” Hendricks, however, questioned the current practicality of crypto transfers, asking, “What is the consumer app with hundreds of millions of users that enables seamless, instant crypto transfers free of charge?”
Brian Armstrong, CEO of Coinbase, promoted the USD Coin (USDC) on the Base platform as a solution. Romero supported Armstrong’s point with a succinct “Based.” Despite the enthusiasm, Hendricks expressed skepticism about using USDC through Coinbase for everyday transactions, suggesting the idea is promising but not yet practical.
This discussion aligns with other significant crypto developments. On the same day, Coinbase chief legal officer Paul Grewal announced that XRP was trading again on Coinbase in New York. XRP had been delisted by many exchanges, including Coinbase, following a 2020 lawsuit by the U.S. Securities and Exchange Commission (SEC) against Ripple Labs. The SEC alleged the sale of unregistered securities, but a 2023 ruling clarified that secondary sales of XRP do not qualify as securities transactions, prompting exchanges to relist the asset.
As the conversation around stablecoins and their application for freelancer payments continues, the potential for change and innovation in the industry is evident.
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