I think the end game for DCC once it establishes a Latin American presence is a buy out by a bigger player (bank, telco, remitter). Blockchain/Bitcoin/Remittance/Payments industry is super fragmented. Next year will be the year of consolidation IMO. Players with value (something to offer), will be the big winners, those without will be left behind. Our early play with Telefonica is important and if we onboard significant users in Latin America we will be in a fantastic negotiating position. India would be a cherry on the top.
According to Allaire, the focus around Circle China is cross-border payments.
He notes: “If I'm a parent in China and my son is studying at London Business School, I might want to send 500 RMB. I should be able to do that and have my child instantly receive it as pounds sterling, in the same way people do that with instant messages today. We are leveraging the fact that we are licensed across the different zones to connect to those use cases."
"If blockchain technology begins to dominate, Western Union could also look at acquiring successful fintech companies and integrating them, to remain relevant in this changing world."
DCC Price at posting:
14.0¢ Sentiment: Buy Disclosure: Held
