Stripe to Reintroduce Cryptocurrency Payments with a Focus on Stablecoins
Summary:
Stripe's co-founder and president, John Collison, plans to reintroduce cryptocurrency as a form of payment via the company's service. The new feature, focusing particularly on stablecoins and enabling payments through USD Coin (USDC) across the Solana, Ethereum, and Polygon blockchains, is set to launch this summer. This decision comes after Stripe discontinued its Bitcoin payment option in 2018.
John Collison, the co-founder and president of Stripe, has declared that cryptocurrency, specifically stablecoins, is ready to return to the realm of payment services. This comes after the company removed Bitcoin as a payment option in 2018. He relayed this information during a developers conference in San Francisco on April 25th. The new stablecoin payment service is scheduled for release this summer. Following the discontinuation of Bitcoin, transaction speed has improved and transaction costs have lowered, with stablecoins showing consistent performance. Despite the aftermath of the 2021 cryptocurrency winter, stablecoin circulation continues to rise. Collison demonstrated the new service by executing a transaction live on stage. The revised crypto payment service will utilize USD Coin (USDC) across the Solana, Ethereum, and Polygon blockchains. The stability and dollar-for-dollar value of USDC enables it to serve as a reliable store of value. While this may not have significant impact in the U.S., this proved significant when compared to the volume of Turkish lira traded on cryptocurrency exchanges. Stripe, which became the first notable payment provider to adopt Bitcoin in 2014, shelved the cryptocurrency four years later due to its inefficacy as a means of transaction. The company reestablished its cryptocurrency engineering team in 2021 after backing out of Facebook's doomed Libra project under political pressure. Stripe handles payments for X and, alongside X (formerly Twitter), allowed social media creators to accept payments in USDC on the Polygon network in 2022. Stripe then collaborated with cryptocurrency exchanges to launch fiat-to-crypto conversion services through Application Programming Interfaces (APIs). Following in the footsteps of Venmo and Robinhood, the company now offers a fiat-to-crypto conversion service for U.S. customers, assuming responsibility for Know Your Customer regulations and fraud prevention.
Published At
4/25/2024 11:46:03 PM
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