Key Takeaways:
- Stripe Reenters Crypto Payments: After halting Bitcoin transactions in 2018 due to volatility, Stripe is reentering the cryptocurrency payment space using Circle’s USDC stablecoin.
- Multi-Blockchain Support: The fintech giant plans to support cryptocurrency transactions across several blockchain platforms, including Ethereum, Solana, and Polygon.
- Strategic Shift and Market Growth: Stripe’s reintroduction of crypto payments reflects a broader strategy to adapt to financial trends, with the company’s value reaching $65 billion and processing over $1 trillion in transactions in 2023.
After ceasing crypto transactions in 2018 due to high volatility issues with Bitcoin, Stripe has announced its return to the cryptocurrency payment space.
This revival, however, is set to begin with a more stable offering: Circle’s USDC stablecoin.
After 6-year hiatus, Stripe to start taking crypto payments, starting with USDC stablecoin https://t.co/vQYNKs4odm
— TechCrunch (@TechCrunch) April 25, 2024
The fintech powerhouse plans to support payments on multiple blockchain platforms including Solana, Ethereum, and Polygon.
Stripe’s initial foray into crypto began in 2014 with Bitcoin, but the company stepped back four years later, citing the cryptocurrency’s volatility and inefficiencies like slow transaction times and high fees.
The withdrawal coincided with the 2018 “crypto winter,” which saw Bitcoin’s value plummet from its December 2017 high of $19,650 to $3,401 by the end of the following year.
In a recent announcement, Stripe co-founder and President John Collison highlighted the evolved landscape of cryptocurrency, stating, “Crypto is finding real utility,” during a keynote at the Global Internet Economy conference.
Collison pointed out improvements in transaction speeds and reductions in costs, which he believes now render cryptocurrency viable as a medium of exchange.
The reintroduction of cryptocurrency payments is part of Stripe’s broader strategy to adapt to the changing financial landscape.
In 2019, Stripe briefly aligned with Facebook’s Libra project and, more recently in 2022, launched an initiative to bridge fiat and crypto payments.
Stripe to enable USDC payments starting this summer https://t.co/C7T2P2p3ES
— The Block (@TheBlock__) April 25, 2024
As one of the world’s largest payment processors with transactions exceeding $1 trillion in 2023, Stripe is currently valued at $65 billion.
The company’s move to reintegrate cryptocurrency payments underscores a significant shift towards embracing stable, reliable crypto transactions in the mainstream financial sector.
About The Author
Efe Bravo, a seasoned journalist, delivers compelling insights into the cryptocurrency and blockchain industry.
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