Uber Technologies, the best known tech company for riding services Uber, is considering using Stablecoins as a potential solution to transfer money more efficiently.
Uber is studying the potential of Stablecoins for low-cost cross-border transactions
At the Bloomberg Tech Conference held in San Francisco on June 5th, Uber CEO Dara Khosrowshahi said the company is actively investigating use cases for digital assets that are typically pinned in Fiat currencies, such as the US dollar. He said it is promising for “global companies” like Uber, as it can reduce the cost of transferring funds internationally, highlighting the practical benefits of Stablecoins.
Khosrowshahi called prospects “very interesting,” but noted that Silicon Valley technology conglomerates, including food delivery (Uber Eats), freight transport (Uber freight), and other logistics and mobility solutions, are still in the early stages of research.
Traditional cross-border payment rails can take 5-7 business days and are processed, each getting a share of the amount as a fee. Stablecoins, meanwhile, allow peer-to-peer travel at internet speeds without intermediaries. By moving to Stablecoins, Uber can eliminate fees associated with wire transfers and other traditional payment methods, reducing payment fees from $30 to less than $1.
Uber CEO also touched on Bitcoin (BTC) and called the pinnacle cryptocurrency “a proven product.” The company has yet to make a formal announcement about its acceptance of crypto, but Khosrowshahi’s comments show that it is ready to adopt the practicality of its use case of financial technology.
His statement also reflects the growing interest among multinational companies in blockchain-based payment rails, considering streamlining their global operations and reducing financial friction.
The preferred regulatory environment encourages Fintech and banks to adopt Sadaya
In March, it was reported that major banks and fintechs are exploring Stablecoin cross-border featuresWith plans to deploy its own Fiatback token. Bank of America has announced that it is launching a bespoke Fiat-backed cryptocurrency, taking part in Paypal, Stripe, Revolut and more.
Recently, sources within Meta revealed that the company is in discussions with various crypto companies to introduce Stablecoins as a way to manage payments. The social media and tech giants who run Facebook, Instagram, Threads, WhatsApp and Oculus have also hired a new vice president of products with Crypto credentials.
Like Uber, Mark Zuckerberg’s Meta is reportedly working on technology that allows creators and influencers from various regions to be paid through Stablecoins instead of wire transfers. The anonymous source added that the company is taking an agnostic approach to the types of stubcoins it supports, rather than choosing a single provider.
Analysts noted that the growing interest in stubcoins from US companies is linked to lawmakers discussing legislation, such as current law, aimed at regulating digital assets widely used to transfer value between two different cryptocurrencies.
Stablecoins are becoming an increasingly popular alternative to local banks and payment railroads in emerging markets. Plus, it offers users all the benefits of cryptocurrency, including fast, cheap, border restaurant transactions, without volatility.
Read again: SEC wins $1.1 million ruling against Key Cruise, a suspected crypto fraudster
Circle launches cross-border Stablecoin network tailored to financial institutions
Last month, Stablecoin Issuer Circle announced the launch of its Circle Payments Network (CPN), a cross-border payment protocol powered by Stablecoin. CPN is designed to connect banks, neobanks, payment service providers, virtual asset service providers, digital wallets, and help resolve international payments in real time using our regulated stubcoins, such as USDC and EURC.
Circle claims that CPNs are chain dependent and built with multi-chine flexibility, allowing institutional clients to choose a preferred blockchain that operates on criteria such as internal risk, compliance, operations, and security. Currently live on Ethereum, Solana and all EVM compatible networks.
Fintech companies and banks have taken a variety of approaches to stables. The former group is not burdened with traditional banking charters, but takes advantage of regulatory flexibility to adopt new payment techniques that customers require. The latter, meanwhile, is set to comply with financial regulations, but is being more cautious.
