Payment giant Stripe will re-enter the cryptocurrency space this summer by supporting Stripe crypto payment, namely the USDC stablecoin. Announced at its Global Internet Economy conference, this marks a shift from Stripe’s previous stance. The company had discontinued Bitcoin payments in 2018 due to volatility and high transaction fees.
Stripe co-founder and president John Collison explained the company’s renewed interest in cryptocurrencies. He pointed to improved transaction speeds and lower costs, making them a more viable means of exchange. Stripe will initially implement USDC payments on the Solana, Ethereum, and Polygon blockchains.
Why Stripe’s Crypto Return Matters
Stripe’s foray into cryptocurrencies dates back to 2014 when it first tapped into the Bitcoin ecosystem. However, in 2018, the company discontinued its support for Bitcoin payments, citing concerns over volatility, lengthy transaction times, and growing fees. This decision highlighted Stripe’s cautious approach to embracing emerging technologies while maintaining its position as a stable and sensible financial powerhouse.
Stripe’s decision underscores the increasing utility and mainstream appeal of crypto payments. With over $1 trillion in transactions processed last year, the company holds a significant position in the global payments market. The move signals potential adoption by merchants on Stripe’s vast platform. This could lead to further growth of crypto payments within the broader market.
Collison indicated that Stripe views cryptocurrencies like USDC as a tool for cross-border payments, remittances, and supporting the creator economy. These use cases have grown significantly, highlighting the benefits of fast, low-cost, and globally accessible digital assets.
Stablecoins Emerge as a Crypto Game-Changer
The decision to focus on stablecoins highlights their growing significance in the digital currency realm. Unlike volatile cryptocurrencies, stablecoins are pegged to assets like the US dollar, ensuring price stability and reducing risk. This has made them appealing within the global payments industry, particularly for businesses and individuals seeking reliability in transactions.
The market capitalization of stablecoins has soared in recent years. Data from CoinGecko indicates that the total value of stablecoins in circulation has exceeded $170 billion, reflecting surging interest and broader acceptance. Stripe’s embrace of USDC positions the company to leverage the growing utility and infrastructure surrounding stablecoins.
