# kaal:claim:3406323-015

**Claim.** The high intermediary fees of centralized fiat payment systems make those systems economically viable only at higher transaction volumes, which creates barriers to entry that decentralized payment systems do not face.

**Type.** failure  **Support.** argued

**Holds when.**

- centralized fiat payment rails intermediated by banks and services such as PayPal

**Source quote.**

> The fees make it only economically viable for higher volumes of transactions, creating barriers to entry in the process.

**From.** Wulf A. Kaal, *Decentralization - A Primer on the New Economy* (2019), IV. Opportunities, page 10

**Cite as.** Wulf A. Kaal, Decentralization - A Primer on the New Economy (2019). SSRN: https://ssrn.com/abstract=3406323

**Verify.** sha256 of source PDF `6293780b57a1ae1de17ec00f99cc94295d4f72ea4d08b17a5c08c44772b221db` at https://raw.githubusercontent.com/wulfkaal/Academic-Papers/main/papers/pdf/Kaal%20-%202019%20-%20Decentralization%20-%20A%20Primer%20on%20the%20New%20Economy.pdf

**Failure mode.** fee-driven-barriers-to-entry  (family: inequality-and-access-divide)

**Topics.** risk-and-incentives

**Keywords.** payment-systems, intermediary-fees, barriers-to-entry, financial-exclusion

**Related claims.**

- restated_by: https://wulfkaal.github.io/claims/3411897-019
- restated_by: https://wulfkaal.github.io/claims/3808867-037
- generalizes: https://wulfkaal.github.io/claims/4734750-039

**Canonical form.** This markdown file is the canonical hashed representation of the claim. Its sha256 is the content hash used for attestation.