banks and credit card networks *can* serve anyone not formally sanctioned, but for sufficiently ick clientele, they choose not to. you might argue that competition will remedy this, there will be *some* stablecoin provider that will serve ick of your choice. 1/

but stablecoins will be subject to network effects (and network effects in the exercise of market power) just like other payment rails. 2/

if the big stablecoins don't serve someone, and EZ exchanges or wallets only easily surface the big stablecoins, the notional ability to pay with spankdollar won't matter very much. and as you say, big incumbents are already building moats for themselves. /fin

(to the degree there is an obligation to redeem any nonsanctioned KYCed customer — not a thing I knew! — censorship would take the form of blacklisting transfers to the customer, refusing to complete the KYC process for funded pseudonymous accounts for disfavored customers.)