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benjaminwootton | 5 months ago

You are correct but with Venmo or PayPal there’s a middleman charging fees who can lock your funds. A decentralised PayPal is appealing.

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Zanfa|5 months ago

Just to be clear, Tether and Circle also have complete control over their respective stablecoins if they so choose. They have the exact same power to reverse, freeze and block any transaction or balance just as PayPal and Venmo do.

notpushkin|5 months ago

Can you elaborate?

lern_too_spel|5 months ago

That middleman can be compelled by the government to return your funds. A foreigner who empties your wallet on a decentralized PayPal cannot.

thehappypm|5 months ago

What fees?

kccqzy|5 months ago

An implicit fee by not paying you any interest for money held in Venmo.

Also notice there's no option to automatically transfer received money into your real checking account. They are banking on you forgetting your money is there and they are earning the interest but not passing it to you.

For this reason I prefer receiving money via Zelle but pay with Venmo.

topranks|5 months ago

Not really.

The “solution” for decentralisation - proof of work - makes the system a lot more expensive (think: higher fees) than a centralised database.