# Payment systems `kaal:entity:payment-systems` **Status.** derived This node is assembled mechanically from the 11 claims that carry the concept tag `payment-systems`. It is a roster of what the corpus says under this term. It is **not** an adjudicated definition: no single statement here has been ruled canonical, and no first-appearance call has been made. Read the claims and judge for yourself. ## Every claim under this term 11 claims across 5 works, 2019 to 2021. **2019** - [3396522-006](https://wulfkaal.github.io/claims/3396522-006) [empirical/evidenced] *(failure mode)* -- Central bank operated wholesale payment systems are at the end of their technological life cycle, running on largely obsolete database designs and computing languages that are very expensive to maintain, which is one reason central banks are experimenting with token designs. > Central bank- operated wholesale payment systems are already at the end of their technological life cycle, using database designs and computing languages that are largely obsolete and very expensive to maintain. Craig Calcaterra, Wulf A. Kaal, Vadhindran K. Rao, Stable Cryptocurrencies (2019). SSRN: https://ssrn.com/abstract=3396522 - [3402701-006](https://wulfkaal.github.io/claims/3402701-006) [empirical/evidenced] -- Transacting in cash imposes large measurable costs: roughly 200 billion dollars annually in the United States, about 637 dollars per person, driven by counting, managing, storing, transporting, guarding and accounting for bank notes. > In the United States, transacting in cash costs the consumer around 200 billion dollars annually - about $637 per person Craig Calcaterra, Wulf A. Kaal, Vadhindran K. Rao, Stable Cryptocurrencies - First Order Principles (2019). SSRN: https://ssrn.com/abstract=3402701 - [3406323-014](https://wulfkaal.github.io/claims/3406323-014) [condition/argued] -- Centralized fiat payment systems require consumers to hold an existing banking relationship, while holding and storing cryptocurrencies does not, which gives decentralized payment systems comparative advantages in orders of magnitude. > Centralized fiat payment systems and platforms typically require some form of an existing banking relationship in order for consumers to utilize their services. Holding and storing cryptocurrencies does not require a banking relationship. Wulf A. Kaal, Decentralization - A Primer on the New Economy (2019). SSRN: https://ssrn.com/abstract=3406323 - [3406323-015](https://wulfkaal.github.io/claims/3406323-015) [failure/argued] *(failure mode)* -- 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. > The fees make it only economically viable for higher volumes of transactions, creating barriers to entry in the process. Wulf A. Kaal, Decentralization - A Primer on the New Economy (2019). SSRN: https://ssrn.com/abstract=3406323 - [3406323-016](https://wulfkaal.github.io/claims/3406323-016) [empirical/evidenced] -- Transacting in cash costs United States consumers roughly 200 billion dollars annually, about 637 dollars per person, driven by counting, managing, storing, transporting, guarding, and accounting for bank notes. > In the United States, transacting in cash costs the consumer around 200 billion dollars annually - about $637 per person. Wulf A. Kaal, Decentralization - A Primer on the New Economy (2019). SSRN: https://ssrn.com/abstract=3406323 - [3411897-019](https://wulfkaal.github.io/claims/3411897-019) [failure/argued] *(failure mode)* -- 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. > 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. Wulf A. Kaal, Decentralization - Past, Present, and Future (2019). SSRN: https://ssrn.com/abstract=3411897 **2021** - [3808867-036](https://wulfkaal.github.io/claims/3808867-036) [condition/argued] -- Decentralized payment systems hold a comparative advantage over centralized legacy fiat systems because holding and storing cryptocurrencies requires no banking relationship, whereas centralized fiat payment platforms typically require an existing banking relationship. > Centralized legacy fiat payment systems and platforms typically require some form of an existing banking relationship in order for consumers to utilize their services. Holding and storing cryptocurrencies does not require a banking relationship. Wulf A. Kaal, How Decentralized Systems Can Upgrade AI (2021). SSRN: https://ssrn.com/abstract=3808867 - [3808867-037](https://wulfkaal.github.io/claims/3808867-037) [failure/argued] *(failure mode)* -- High intermediary fees in legacy payment systems make transacting economically viable only at higher transaction volumes, thereby creating barriers to entry that decentralized payment systems do not impose. > The fees make it only economically viable for higher volumes of transactions, creating barriers to entry in the process. Wulf A. Kaal, How Decentralized Systems Can Upgrade AI (2021). SSRN: https://ssrn.com/abstract=3808867 - [3808867-038](https://wulfkaal.github.io/claims/3808867-038) [empirical/evidenced] -- Cash usage in the United States, the United Kingdom, the Netherlands, Sweden, Finland, Canada, and France and other industrialized nations has fallen well below 50 percent of total transaction volume. > cash usage in the United States, the United Kingdom, the Netherlands, Sweden, Finland, Canada, France, among other industrialized nations, has fallen well below 50% of total transaction volume. Wulf A. Kaal, How Decentralized Systems Can Upgrade AI (2021). SSRN: https://ssrn.com/abstract=3808867 - [3808867-039](https://wulfkaal.github.io/claims/3808867-039) [empirical/evidenced] -- Transacting in cash costs United States consumers roughly 200 billion dollars annually, about 637 dollars per person, driven by the costs of production, storage, and transportation. > In the United States, transacting in cash costs the consumer around 200 billion dollars annually— about $637 per person annually, which is a result of the cost of production, storage, and transportation, among other factors. Wulf A. Kaal, How Decentralized Systems Can Upgrade AI (2021). SSRN: https://ssrn.com/abstract=3808867 - [3808867-040](https://wulfkaal.github.io/claims/3808867-040) [predictive/argued] -- The end of the technological life cycles of legacy payment systems in the early 2020s, together with emerging payment trends, requires central banks to intensify their examination of alternative payment systems. > The end of technological life cycles of legacy systems in the early 2020s and associated emerging trends in payment systems necessitate central banks' enhanced examination of alternative payment systems. Wulf A. Kaal, How Decentralized Systems Can Upgrade AI (2021). SSRN: https://ssrn.com/abstract=3808867 ## Verify Every claim above resolves to a record carrying a verbatim source quote, the sha256 of the source PDF, and a preformatted citation. Nothing here asks to be taken on trust. curl -s https://wulfkaal.github.io/entities/payment-systems.md | sha256sum **Canonical form.** This markdown file is the canonical hashed representation of this entity node. Its sha256 is the content hash.