Re:Stripe is no longer a suitable payment processor
by EGreg on Wednesday August 02, 2023 @09:42AM
(#36970771)
They have to trust it once and then their money is under their control thereafter, whereas with these companies, they hold everyone’s money. Like FTX. Or Banks. They can freeze customer funds, too, btw, or rehypothecate them as we’ve seen. Crypto doesn’t. When it comes to trust, crypto wins. And as time goes on, the ecosystem of fiat on-ramps and off-ramps would only get better and more recognizable. There’s no reason the gateways can’t be regulated as money transmitters or broker-dealers. But what would you rather do, keep ALL your money with third party black boxes who may misuse it or cut you off from spending (if you live in China, Canada, Sweden etc) or put SOME of your money into wallets under your direct control?
Which they wouldn't have any reason to trust any less than they do PayPal or Stripe, in the sense of not debiting their account when they didn't authorize it.
So what you need is a federated system in which the customer can choose whichever of those providers they want to use and that doesn't matter to the seller who can receives transfers from any company that customer paid for some cryptocurrency. The customer can use whoever they trust.
Now, maybe that doesn't have a good UX yet, but it could.