February Recap and Preview of Payment Series
Show Me the Money: Previewing the Series on the Intricacies of Payment
Happy Brief Friday!
In my January review, I decided to allocate my time for each project, mainly by limiting my writing and other projects and reviewing my productivity every month. Therefore, before jumping into the featured article about a preview of the Payment Series, I want to share my February recap. Although things improved in that I didn’t spend a ridiculous amount of time on writing or any single project, I am still not in my zone due to typical but unspeakable human life chaos, such as distraction, uncertainty, blessings and curses in every relationship, and so on.
Here is my February recap:
What I have achieved and experienced in February:
This step is critical because, by celebrating what I have achieved in the productivity review, I am actually practicing self-compassion and helping myself stick to my productivity review routine. The completed tasks include:
✅ Read the introductory book on Romans.
✅ Read “Overcoming the Middle-Income Trap: Taiwan’s Economy from 1990 to 2020.”
✅ Almost finished reading/listening to Messari’s 2023 Crypto Theses.
✅ Wrote four Briefs, one per week.
✅ Restarted my exercise routine.
✅ Completed two sessions of self-awareness communication training.
✅ Took an impromptu trip and a semi-impromptu trip.
What I wish I had done (or had not done):
⬆️Relaxed and unwound regularly.
⬆️Resumed my Solidity and CS50 courses.
⬆️Stuck to the Hell-Yeah-or-No spirit.
⬆️Reached out to more friends.
⬆️Spent less time writing
What I will do in March:
➡️Keep Jason’s Brief going within the time limit.
➡️Hang out with friends.
➡️Kick off my podcast.
➡️Finish Messari’s 2023 Crypto Theses
➡️Resume my Solidity and CS50 courses.
➡️Relax. (Paradoxically, putting it on the to-do list does not seem like a stress-free way to relax, but taking it off my to-do list postpones my relaxation indefinitely.)
Featured Article: A Preview of Payment Series
I was surprised when I recently saw a resume that mentioned “a strong understanding of cross-border payments.” This made me wonder what skills and experiences are necessary to become an expert in the payment industry. That’s when I came across the “Visa & Mastercard: Priceless” article by App Economy Insights (and therefore became a paid subscriber).
Despite having a working knowledge of payment system laws, I was struck by how ignorant I am about the payment industry as a whole. So I delved deeper into the payment ecosystem and read “Nate Seidel’s The Payments Industry: The Complete Beginner’s Guide to Payment Systems,” I was amazed by the (in)efficiency, delicacy, and complexity of the industry run by millions of people. However, this newfound knowledge also made me feel somewhat overconfident about writing on this complicated topic. Thus, I have come up with some themes and perspectives on payment that I intend to include in future Briefs:
Participants—this is probably the best perspective to appreciate the big picture of the payment ecosystem because we see ourselves (at least as payors and payees) and most stakeholders in the game. These participants include:
Payors and Payees (beneficiaries)
Financial Institutions
Banking Institutions
Non-banking Institutions
Network service providers
Central Banks
Emerging Payment Methods and Systems
Laws and Regulatory Framework of the Payment System
Cross-Border Payments and Remittances
Role of Payment Systems in E-commerce and Trade
Payment Fraud and Security
Central Bank Digital Currency (CBDC) in the Payment System.
Disruptive Technology and Innovation in the Payment industry
Future of Payment
Politics and Payment
The often-unnoticed but underlying element of the payment system is power dynamics, making payment undoubtedly a political issue: the choice of currency (or no choice at all), the regulatory regime and framework, the interdependence between participants, and more. By writing the Payment Series, I aim to bring accolades and shed light on the collective wisdom of mankind that deserves both more appreciation and improvement.
To illustrate the political nature of payments, let me conclude this Payment Series preview by quoting ChatGPT on why Facebook’s blockchain-based payment system, Diem, failed:
Libra (now known as Diem) faced a number of challenges and controversies that ultimately led to its failure to launch as originally planned. Here are some of the main factors:
Regulatory challenges: From the outset, Libra faced significant pushback from regulators around the world, who were concerned about the potential for the cryptocurrency to be used for illicit activities such as money laundering and terrorism financing. Many central banks and government officials also saw Libra as a threat to their control over monetary policy and financial stability.
Lack of trust: Libra's association with Facebook, which has a history of data privacy and security issues, raised concerns about the safety and security of users' financial information. This lack of trust in Facebook and its ability to properly manage a cryptocurrency project was a major obstacle for Libra.
Business and strategic issues: Some of the initial partners in the Libra Association, including PayPal, Mastercard, and Visa, dropped out of the project amid regulatory pressure and concerns about Facebook's involvement. This weakened the project's credibility and viability.
Leadership changes: There were several high-profile leadership departures from the project, including the departure of Libra's original leader, David Marcus, and the subsequent appointment of a new CEO, Stuart Levey. These changes may have contributed to a lack of cohesion and direction within the project.
Market changes: Since the initial announcement of Libra, the cryptocurrency market has evolved significantly, with the rise of other cryptocurrencies and stablecoins. This may have made it harder for Libra to differentiate itself and gain traction.
The question of this Week:
How do you feel when you become aware of your ignorance? Do you feel positive or negative?
Stay safe and sharp,
Jason Lai
Disclaimer: Not legal advice. You can see the full disclaimer & disclosure here.
Credit: Originating from my learning about payment and questions, this Brief was reviewed and edited by ChatGPT.