As a seasoned observer of the crypto and financial technology scene, I’ve seen Stripe’s tumultuous relationship with cryptocurrencies unfold over the years. After suspending crypto payments due to Bitcoin’s volatility and high transaction fees back in 2018, it seemed that Stripe had distanced itself from the digital asset ecosystem. However, fast forward to 2024, and we see Stripe re-entering the crypto space with a bang.
As an observer, I’m excited to share that Stripe, a leading financial services provider, is making significant strides in the cryptocurrency space. Specifically, they aim to facilitate crypto payments using the USDC stablecoin on the efficient and cost-effective Solana blockchain during the upcoming summer season.
The Sojourn Away From Crypto
John Collison, Stripe’s co-founder, announced that their platform is now capable of processing global stablecoin payments. He further explained that these crypto transactions will be instantaneously converted into fiat currency upon completion.
I. In the upcoming transactions involving crypto payments on Solana, Ethereum, and Polygon blockchains, only USDC issued by Circle will be utilized.
Back in 2018, Stripe halted crypto payments on its platform due to Bitcoin‘s (BTC) extreme volatility. The company viewed Bitcoin more as a valuable asset than a means of exchange. Transactions were lengthy and fees were escalating, causing apprehension for Stripe.
In late 2017, Bitcoin experienced its first significant price downturn, causing the value to plummet from $19,650 to $3,401 by the end of 2018. Amidst this digital asset market slump, Stripe withdrew its participation. However, in an attempt to re-enter the scene, Stripe joined forces with Facebook’s Libra project the following year. Unfortunately, Libra failed to gain momentum and Stripe’s return was cut short as a result.
In 2022, the payment firm unveiled a project that facilitates fiat-to-crypto payments.
Stripe Identifies The Prospect and Chose USDC
Stripe’s decision to re-enter the cryptocurrency commerce arena indicates that the company sees potential in this area. This may be part of their plan to cater to their clients’ changing requirements.
I’ve observed Stripe’s perspective this time, and Collison expressed his belief that cryptocurrencies are discovering genuine value. He recognized the accelerating trend in crypto transaction speeds and decreasing costs, adding that “it’s becoming clear that crypto is making sense as a means of exchange.”
Crypto is back. @Stripe will start supporting global stablecoin payments this summer. Transactions instantly settle on-chain and automatically convert to fiat. Join the waitlist and watch the demo (h/t @Solana) from Sessions.
— John Collison (@collision) April 25, 2024
It’s clear that USDC, the US dollar-backed stablecoin, is increasingly recognized on a global scale. This comes as no surprise, given that Cardano‘s founder, Charles Hoskinson, has referred to it as an early example of a Central Bank Digital Currency (CBDC).
Circle has introduced a new smart contract feature allowing the swap of BUIDL fund shares from BlackRock for USDC stablecoins on their platform.
The Stripe USDC-Solana move is poised to go live later this summer.
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2024-04-26 00:08