Uber Technologies Inc. is evaluating the use of stablecoins as a payment option, its CEO, Dara Khosrowshahi, announced at the Bloomberg Technology Summit on Thursday in San Francisco.
Khosrowshahi said the ride-hailing and delivery giant views stablecoins as a means to facilitate faster and cheaper payments. He added that the company will closely examine this form of digital currency.
Practical Benefits of Stablecoins
Stablecoins are a type of cryptocurrency designed to hold a steady value, often tied to the U.S. dollar. This feature helps solve common problems with sending money across borders. Traditional transfers can take days and involve many banks, each adding fees.
With stablecoins, transfers can happen almost instantly, and costs can drop from tens of dollars to under one. By using the internet to move funds, stablecoins cut out middlemen and settle payments quickly.
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Earlier Stance on Cryptocurrency
Uber’s interest in digital currencies is not new. In 2021, Khosrowshahi said the company might accept bitcoin or other cryptocurrencies if doing so offered enough benefit.
He made it clear, though, that Uber was not planning to put bitcoin on its balance sheet. A year later, he again said Uber would “absolutely” support crypto payments in the future. Back then, he noted that high transaction fees and environmental concerns still posed challenges.
Regulatory Environment in the U.S.
Stablecoins have attracted attention from U.S. lawmakers. Under pressure from former President Donald Trump, Congress is moving toward a legal framework for stablecoin issuers.
The proposed GENIUS Act aims to set standards and rules for these digital tokens. This push could make stablecoins more widely accepted, giving companies like Uber confidence to use them for payments.
Cross-Border Payment Challenges
For many businesses, sending money overseas means high costs and long waits. A bank transfer can take up to five business days, with fees at each step. Stablecoins sidestep these hurdles.
By cutting out correspondent banks, payments can clear in seconds. This speed can help Uber pay drivers or process deliveries in markets around the world much faster.
Looking Ahead for Uber
Khosrowshahi stressed that Uber will only adopt stablecoins if they offer real value. “We want to see clear benefits before we move forward,” he said. The company plans to study the technology’s security, costs, and ease of use.
If stablecoins prove reliable, Uber could let riders pay with them or use them to send earnings to drivers in different countries.
Potential Impact on Drivers and Riders
Using stablecoins could change how drivers receive their pay. In some countries, getting access to dollars or bank services is tough.
Stablecoins might give drivers faster access to funds without relying on local banks. Riders visiting from abroad could also find it easier to pay for trips without exchanging cash or paying hefty card fees.
Uber’s move to explore stablecoins reflects a broader shift in how companies think about payments. If the trials succeed, stablecoins could offer faster, cheaper transactions for Uber’s global network.
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