Unpacking Web3 Payments: Lessons from Chaoshan Underground Banking

The world of Web3 payments is buzzing with innovation, but are we focusing on the right aspects? A fascinating post on X by user @agintender dives deep into this question, drawing inspiration from an unlikely source: the underground banking systems of the Chaoshan people. This article explores how these traditional mechanisms can reshape our understanding of Web3 payments, shifting the focus from settlement efficiency to the art of circulation.

Settlement vs. Circulation: A New Perspective on Payments

In the Web3 space, much of the conversation around payments centers on settlement systems—think low-latency, high-throughput blockchain transactions with minimal fees. But @agintender argues that this focus misses the bigger picture. Traditional settlement systems, like Singapore’s FAST or the U.S.’s Fedwire, prioritize security and control, often leading to high friction, strict KYC (Know Your Customer) requirements, and limited operating hours.

On the other hand, underground banking systems, such as those used by the Chaoshan community, operate on a different principle: circulation. These systems don’t rely on direct transfers but use a network of global accounts to “mirror” funds across locations. For example, an estimated 300 billion RMB flows annually between the Greater Bay Area and the Middle East through these underground channels, bypassing official clearing systems entirely. This mirrors Web3 cross-chain bridges, where assets are locked on one chain and released on another, highlighting a key insight: circulation, not settlement, drives real efficiency.

The Power of Retention in Payment Systems

A core idea in the post is that effective payments aren’t about moving money out but keeping it in. Take USDT (Tether), a popular stablecoin in Web3. According to Glassnode data, as of March 2025, over 63% of USDT hasn’t moved in the short term. Instead, it’s locked in DeFi liquidity pools, lending protocols, or cross-chain bridges. This mirrors the Chaoshan approach, where funds are encouraged to “stay in the circle” and keep circulating within the community.

This concept isn’t new. In the Web2 world, platforms like Alipay encourage users to keep funds in their ecosystem (think Balance Bao), creating a pool of active assets that users can spend within the platform. The lesson for Web3? Payments should be designed to create ecosystems where funds enter, stay, and flow—rather than just facilitating one-off transactions.

Payments as Channels, Not Just Technology

@agintender emphasizes that payments are more than technical infrastructure—they’re channels for capturing and distributing value. Whoever controls the payment gateway controls the flow of assets. A great example is the TON wallet on Telegram, which, according to TonStat, handles over 320 million daily transactions in 2025. Most of these are small, fragmented payments—think红包 (red packets), in-game purchases, or micro-transactions. These funds don’t leave the TON ecosystem; instead, they fuel DeFi, NFT trades, and staking within the network.

This “digital money pool” model mirrors Chaoshan underground banking: guide funds in, create reasons to use them, increase transaction frequency, and encourage retention. It’s less about enabling a $10 coffee purchase and more about creating a $10 meme coin buy that keeps the user engaged in the ecosystem.

Trust and Networks: The Underground Advantage

Underground banking thrives on trust, not formal systems. Chaoshan networks can move $10 million in cash from Thailand to the Philippines in under 24 hours, without any formal reconciliation—relying entirely on social trust and relationships. Web3 is moving in a similar direction with technologies like Intent Protocols and ERC-4337 account abstraction, which prioritize value coordination over rigid settlement.

The post highlights existing Web3 tools that embody this philosophy: Tron’s energy leasing, BSC’s gas-free stablecoin transactions, and Pundi X’s offline payment solutions. These innovations show that the infrastructure already exists—it’s just a matter of using it creatively, as the Chaoshan people have done for centuries.

The Future: A Digital Money Pool Model for Web3

So, what does the future of Web3 payments look like? @agintender proposes a “digital money pool” model over a “digital bank” model. This means building permissionless, relationship-driven networks with decentralized identities and social incentives. A successful Web3 payment system should meet three criteria:

• Funds can enter easily: Low barriers to entry, like simple onboarding.
• Funds don’t want to leave: Create a sticky ecosystem with DeFi, NFTs, or gaming.
• Funds move quickly: Enable high-frequency, social transactions.

The post challenges the idea that payments must be tied to physical purchases. Globally, people already use different payment methods for different needs—why should Web3 be any different? The real question isn’t “Can I buy coffee with crypto?” but “Can I build a system where funds flow in and never leave?”

Conclusion: Be Like the Chaoshan People

The Chaoshan underground banking system offers a powerful lesson for Web3: payments are about creating a low-friction, community-driven ecosystem where value flows naturally. Instead of obsessing over transactions per second (TPS) or fees, Web3 builders should focus on designing systems that attract, retain, and circulate funds—like water gathering in a low-lying area.

As @agintender puts it, the goal isn’t to settle every transaction perfectly but to ensure that “funds come once and never leave.” By adopting the Chaoshan mindset, Web3 can unlock a future where payments aren’t just a utility—they’re the foundation of a thriving digital economy.