Hangzhou Stablecoin Payment Conference Shorthand: Traditional payment institutions are rushing into the venue

1. I didn't expect that a private meeting would eventually turn into an industry conference.

Originally, this was a private meeting to discuss stablecoin payments, with only about 20 people. Later, more and more people joined, and it eventually became a large meeting of more than 100 people. It can be said that it is the stablecoin payment conference in Hangzhou.

This shows that the current popularity of stablecoin payments is not just an undercurrent, but that all parties are running to enter the venue.

I have personally done stablecoin payments, and I have felt the popularity of stablecoin payments before, and I can also deeply understand the value of stablecoin payments and the changes they will bring.

Nowadays, I feel more clearly that the popularity of stablecoin payments has further intensified.

2. Why are there so many people attending the Hangzhou Stablecoin Payment Conference?

Hangzhou itself is a gathering place for e-commerce in the country, with Alibaba as the leader, and the e-commerce ecosystem is very developed.

From the upstream supply chain to the terminal live streaming and internet celebrity economy, payment as the core infrastructure runs through it.

E-commerce has three flows: information flow, capital flow, and logistics.

Payment represents the capital flow.

The development of the e-commerce industry has also led to the maturity of the payment track, making Hangzhou a gathering place for the payment industry.

In addition to the well-known Alipay, there are actually a number of cross-border payment giants such as Lianlian Pay, Ping Pong Pay, and NetEase Pay.

With so many payment companies in Hangzhou, a large number of payment veterans have naturally gathered.

But you have to know that the payment business is too mature, so mature that it is very involuted, so payment companies all want to expand new businesses.

The rise of stablecoins, especially the listing of Circle, the leader of compliant stablecoins, coupled with JD.com's application for a stablecoin license in Hong Kong, has made more people pay attention to stablecoin payments.

Therefore, this time the small boutique stablecoin payment bureau in Hangzhou quickly ignited the entire payment industry in Hangzhou, and traditional payment companies all wanted to enter the stablecoin payment track.

3. Traditional payment institutions are engaged in a stablecoin payment war.

Traditional payment institutions have business scenarios and merchant networks, and stablecoin payments can effectively reduce the cost and timeliness of cross-border payments. The two can be said to be a natural fit, so how can traditional payment institutions not be tempted?

Stablecoins are the killer of cross-border payments!

Since stablecoin payments will sooner or later change the traditional payment system, then join in as soon as possible. Not to mention the first-mover advantage, at least you can't be taken by competitors first.

This is if you don't do it, your competitors may do it first, and finally fall into a passive position, so everyone has to engage in a "war preparedness race" for stablecoin payments.

As a result, the stablecoin payment track has been swept up by traditional payment institutions.

4. The main forces of the Hangzhou Payment Conference are actually two categories: one is traditional payment institutions, and the other is various technical service providers serving traditional payment institutions.

Traditional payment institutions are the main force of stablecoin payment, so a group of technical service providers have emerged around the main force.

Traditional payment institutions do not understand blockchain technology and have no relevant experience, so they need someone to help provide related services.

Stablecoin payment is still quite complicated.

For enterprises, they need enterprise-level wallet solutions, anti-money laundering services such as KYT/KYC/AML, license application or compliance consulting services, on-chain security services, etc.

So, a bunch of providers have emerged in these service areas.

The organizer of this conference is BlockSec, a well-known smart contract auditing company in the Web3 industry. They also want to seize this wave of payment and provide relevant solutions for payment companies.

BlockSec not only provides the most basic contract auditing services, but also provides KYT anti-money laundering services, on-chain attack blocking and other security services.

Therefore, we can see that the wave of stablecoin payments has brought many industry opportunities.

Various infrastructure project parties in the Web3 industry should seize this opportunity. This kind of big narrative, big trend and big cake are hard to come by.

5. The highlight of this conference is the Yiwu research sharing by CC, the head of the Morph public chain ecology.

Previously, Huatai, a domestic brokerage, issued a research report saying that in Yiwu, China, the world's small commodity center, stablecoins have become an important tool for cross-border payments, and the flow of stablecoins on the chain will exceed 10 billion US dollars in 2023.

Later, the reporter of 21st Century Business Herald went to Yiwu to investigate, but the conclusion was that only a few merchants collected it.

So, how is the use of stablecoins in Yiwu? This seems to have become a mystery.

Morph public chain currently focuses on the payment field, so CC led a team to Yiwu for research.

The final conclusion is: the actual situation is between the two, not as large as Huatai said, but not as small as 21st Century Business Herald said, and merchants have spontaneously used stablecoins.

The securities employees who sit in the office and write research reports will deliberately exaggerate just for the company's consulting business;

The reporters of traditional media do not understand blockchain either, but just ask casually among merchants. Many people actually dare not say it. Only when there is business dealings will they reveal the truth, so the conclusion is not reliable.

Only those who are in the stablecoin payment industry and who are truly exposed to the actual business can get first-hand information and draw conclusions that are closer to the truth.

6. What opportunities do ordinary users have?

From this Hangzhou Payment Conference, we can see that this is a feast for institutions.

Traditional payment institutions are promoting the craze of stablecoin payments, and they can obtain a second growth curve;

Various infrastructure project parties of Web3 have obtained more customers and business income;

Ordinary users will not attend this conference and seem to be unaware of this wave of stablecoin payments.

It can only be said that now is the calm before the storm, and there is actually an undercurrent under the sea level without a trace of waves.

The transformation of the traditional payment system by stablecoin payments will eventually affect each of our ordinary users, reflected in daily consumption and cross-border remittances.

Of course, the more direct benefit is that there will be a "hundred-coin war" in the stablecoin track in the future, and there will be many new stablecoin forces subsidizing the market and liquidity, and we retail investors can also arbitrage from it.

We can wait and see.