# kaal:claim:3411897-019

**Claim.** Intermediary fees in 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 impose.

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

**Holds when.**

- centralized payment systems requiring bank or processor intermediaries

**Source quote.**

> The fees make it only economically viable for higher volumes of transactions, creating barriers to entry in the process. Decentralized payment systems are not subject to these limitations.

**From.** Wulf A. Kaal, *Decentralization - Past, Present, and Future* (2019), Part 2: The Present, The Brave New World of Decentralization, page 29

**Cite as.** Wulf A. Kaal, Decentralization - Past, Present, and Future (2019). SSRN: https://ssrn.com/abstract=3411897

**Verify.** sha256 of source PDF `82f0aea026b3e3a526ec51bc073b3b864dc06cd9083ff9c54c550037045edaa9` at https://raw.githubusercontent.com/wulfkaal/Academic-Papers/main/papers/pdf/Kaal%20-%202019%20-%20Decentralization%20-%20Past%2C%20Present%2C%20and%20Future.pdf

**Failure mode.** fee-driven-exclusion  (family: inequality-and-access-divide)

**Topics.** economics, risk-and-incentives

**Keywords.** payment-systems, transaction-costs, barriers-to-entry, intermediaries

**Related claims.**

- restates: https://wulfkaal.github.io/claims/3406323-015
- restated_by: https://wulfkaal.github.io/claims/3808867-037
- extends: https://wulfkaal.github.io/claims/3128900-040
- generalizes: https://wulfkaal.github.io/claims/5095633-026
- 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.