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The competitive edge in stablecoins now hinges on distribution networks controlled by established players, according to insights from the architect of Meta's failed Diem project. This shift signals a strategic pivot from technical innovation to user-centric relationships, reshaping how stablecoin providers compete. The demise of the 'stablecoin sandwich' model—where intermediaries profited from transaction fees—highlights the importance of direct user engagement and network effects. For the crypto market, this could intensify competition among platforms to capture user loyalty, potentially altering the dynamics of cross-border payments and DeFi ecosystems.
