In a significant move that marks its re-entry into the cryptocurrency space, payment giant Stripe has announced support for USDC payments across more than 150 countries as of October 10.
This development comes six years after the company had discontinued support for Bitcoin and crypto payments altogether. The new service allows buyers to make payments using USDC on multiple blockchain networks, including Ethereum, Solana, and Polygon.
Implementation and Availability
Stripe’s implementation of USDC payments is designed to be versatile and user-friendly. The new feature can be integrated with various Stripe products, including checkout, content, or payment intents, with plans to extend support to subscription services in the near future.
Currently, the service is available to hundreds of thousands of U.S. businesses, allowing them to receive payments directly in dollars. This approach mitigates the volatility concerns that had previously led Stripe to step back from cryptocurrency payments regardless of Stripes rapid growth.
The company has outlined plans for further expansion, aiming to make the service available in more countries and regions, potentially revolutionizing cross-border transactions for businesses worldwide.
Stripe’s History with Cryptocurrency
Stripe first entered the Bitcoin ecosystem in 2014, showing early interest in the potential of digital currencies. However, in 2018, it discontinued these efforts, citing Bitcoin’s volatility, its tendency to function more as an asset than a medium of exchange, and issues with transaction times and fees.
This decision coincided with the first “crypto winter,” where Bitcoin’s value plummeted from nearly $20,000 to around $3,400. In 2019, Stripe briefly joined Facebook’s Libra project as a co-founder but stepped away later that year.
The company’s cautious approach continued in 2022 when it introduced a project to facilitate fiat-to-crypto payments, signaling a gradual re-engagement with the cryptocurrency sector.
Implications and Future Outlook
Stripe’s decision to support USDC payments represents a significant shift in its stance towards cryptocurrencies and reflects broader trends in the payments industry.
By choosing to work with USDC, a stablecoin pegged to the US dollar, Stripe addresses many of the concerns that led to its previous withdrawal from the crypto space.
This move could potentially accelerate the adoption of cryptocurrency payments in mainstream commerce, especially given Stripe’s extensive global reach.
As the company plans to expand this service to more regions and potentially include other stablecoins or cryptocurrencies, it positions itself at the forefront of the convergence between traditional finance and the crypto economy.