Circle is actively reinforcing its position in the regulated stablecoin market, but this may lead to monopolization and high fees.
Circle's Path to Dominance
Circle has achieved significant regulatory success with its stablecoin USD Coin (USDC), attracting attention from both financial institutions and regular users. Partnerships with leading payment systems like Visa and Mastercard further solidify USDC's position in international payment networks.
The Need for Competition Among Stablecoins
Some argue that having multiple stablecoins may seem redundant. However, differences in fees, settlement times, and accessibility emphasize the importance of maintaining competition in this market. Without a healthy competitive environment, Circle could dictate terms that negatively impact consumers.
The Dangers of Centralization and Ubiquity
The centralization of control over stablecoin payment channels could lead to new fees similar to those in traditional financial systems. As Circle dominates, users may face mandatory charges, contradicting the original ideals of cryptocurrency.
To ensure openness and choice in the stablecoin market, it is crucial to maintain a variety of offerings. Competition must be a key factor to avoid monopolization and high prohibitive rates.
