Dealing with cryptocurrency payments is still somewhat risky. Fluctuating values can make a lot of retailers Bitcoin-averse. BitPay, the leading payment processor, is trying to offer a viable alternative. Instead of settling BTC and BCH payments in just fiat currencies, they now support two stablecoins as well.
An Interesting Decision by BitPay
Processing cryptocurrency transactions has made BitPay a very successful company over the years. Their acceptance of Bitcoin has been a big selling point during the early stages. Recently, the firm also allowed Bitcoin Cash transactions to occur. It shows there is a lot more to cryptocurrency than just Bitcoin itself.
BitPay is now taking a different step to beef up their existing offering. The company is intent on getting more people to accept cryptocurrency payments. Their existing services will remain in place, yet an interesting addition has been made. Clients can now receive their payouts in stablecoins, alongside fiat currencies. Both Gemini Dollars and Circle USD Coin are officially supported as of this week.
Both of these stablecoins are relatively now. These companies are both regulated service providers which allows them to represent US dollar holdings as blockchain tokens. Each Gemini Dollar or Circle USD Coin is backed by $1. These currencies can be converted to US Dollars on their respective platform. Additionally, they can be used on other platforms and traded against cryptocurrencies.
Why Does it Even Matter?
On the surface, this decision might not make sense to everyone. At the same time, merchants often acknowledge dealing with fiat currencies can be a hassle. Having a digital and backed representation of the US Dollar can be quite beneficial in the long run. Giving merchants more options is always a top priority for BitPay.
There is also a portion of BitPay users who do not have a supported bank account. As such, they are ineligible for fiat currency settlement, which is very problematic. Offering stablecoin settlement can offer some relief, at least until the bank account situation improves.
It is another example of how blockchain-based assets are borderless first and foremost. Both of these stablecoins can provide settlement to everyone in the world. With no added volatility to be concerned about, settlements become frictionless. For BitPay, it is a gamble worth taking, as they may attract more clients in the long run. It is all about empowering users and giving them plenty of options to choose from.
What do you think about BitPay’s decision to include stablecoins as a payment option? Let us know in the comments below.
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