U Card faces challenges, encryption payment future may rely on Compliance stablecoin system

The payment sector is currently in a transformation stage. Although existing products have improved in design and experience, there is still a distance to establishing a complete Web3 payment framework. The U Card, as a new form of encryption payment, is essentially a compromise between on-chain payments and off-chain consumption needs.

The U Card achieves a fusion model between Web2 and Web3 by binding on-chain accounts and stablecoin balances, combined with off-chain consumption interfaces. Its attention stems from users' expectations for the daily application of on-chain assets and reflects the fact that stablecoins are extending from traditional scenarios to retail payments.

However, the U-card model is highly dependent on the traditional financial system and is difficult to sustain in the long term. The project party is in the role of "intermediary of intermediaries," lacking voice and facing high costs and low profit dilemmas. For Web3 startup teams lacking traffic and financial infrastructure experience, the U-card project is difficult to sustain.

The traditional financial settlement system is the main factor restricting the development of encryption payments. Some projects attempt to build a closed ecosystem similar to underground banks, but this model is difficult to promote to mainstream applications. What truly has global potential is an on-chain settlement system centered around USD stablecoins and relying on Compliance networks.

The United States is promoting the development of a stablecoin payment network, positioning it as a strategic payment infrastructure. Several fintech companies are expanding the application of the US dollar stablecoin in areas such as international settlement and merchant acquiring. This development direction emphasizes Compliance and traceability, contrasting with the closed "digital bank" model.

As the global status of the dollar faces challenges, the United States is trying to build a "dollar + dollar stablecoin" dual-track monetary system. Stablecoins have become a strategic tool for the United States in international financial competition. This trend requires that the payment system must be built on compliant financial institutions and regulatory approvals.

The future of the encryption industry will be a future that is fully integrated with traditional finance. Many financial institutions are accelerating their entry into the on-chain world, with standards of Compliance, transparency, and regulation. The true future of Web3 payments may be built on the foundation of dollar stablecoins and compliant settlement channels, maintaining openness while not straying from legal boundaries.