Uber CEO unveils plans to use stablecoins for global payments

Uber CEO Dara Khosrowshahi says the company is considering the use of stablecoins for global payments to reduce cost.

Speaking in an interview on 5 June, Khosrowshahi said while the company is still in the study phase, he believes stablecoins hold great potential.

Cutting cost

Stablecoins are “stable” versions of cryptocurrencies. Because cryptocurrencies are highly volatile, they are not ideal for payments, hence the need for stablecoins.

Several businesses have been considering the use of these crypto assets for payments because they are generally stable in terms of value, and cost much less for transactions, just like regular cryptocurrencies.

This makes them ideal for cross-border payments where currency conversions can cost a lot. He said during the interview:

“Yeah, we’re still in the study phase, I’d say, but I think Stablecoin is one of the  more interesting instantiations of crypto that has a practical benefit other than crypto as a store of value. You know, obviously you can have your opinions on Bitcoin, but it’s a proven commodity. Well, and you know, people have different opinions on where it’s going. But I do think that it is stable. Bitcoin is quite promising, especially for global companies that are moving money around globally to create a mechanism for us to essentially reduce costs in terms of moving money internationally. So that’s super interesting to us. And we’re definitely going to take a look.”

Increasing demand

Over the years, stablecoins have been the most popular group of crypto assets as crypto skeptics also use them for payments. 

The most popular of them, Tether (USDT) is currently the third-largest crypto asset by market cap because of this, and with big retailers like Uber coming in, the demand is expected to only increase in the coming years.

This will also potentially pave the way for Bitcoin, as stablecoins will make skeptics more comfortable and they can move on to using crypto as a store of value.