Stripe enters crypto world by paying Twitter followers in stablecoins. During the next months, Stripe will begin taking payments from Twitter users. Who use cryptocurrencies, marking the latest evidence of how large financial institutions. These are becoming more open to digital assets.
Following the issuance of a statement on Friday. The $95 billion online payments business announced. That it will begin offering merchants the ability to make cryptocurrency settlements. Through the stablecoin USDC. Which is manufactured by cryptocurrency startup Circle. For the purpose of maintaining price stability. Stablecoins are digital tokens whose value is related to the value of fiat currencies. When it comes to the USDC cryptocurrency, as the name implies. The cryptocurrency is backed by the dollar of the United States.
As the first company to take payments through the new payment system. Twitter will be the first to do so. Following the implementation of this change, the social media platform. In which has recently been the subject of much speculation. About a possible takeover by Tesla CEO Elon Musk. This will now allow only a small number of creators to receive their earnings. From its paid Ticketed Space. And Super Follows features in United States Dollars (USD).
The cryptocurrency payment processor Stripe is making its first significant entrance. Into the cryptocurrency industry since it discontinued service for bitcoin four years ago. A lack of speed in processing regular transactions. As well as the digital coin’s reputation for wild price swings. Were cited as grounds for the decision by the San Francisco-based start-up. To discontinue accepting bitcoin payments in January 2018.
As Web3’s Hype grew, The Corporation warmed up to Crypto
However, the corporation has recently been more open to cryptocurrency. As a result of the hoopla around the “Web3” movement. Which calls for the establishment of a decentralized version. Of the internet based on blockchain technology. Stripe launched a team dedicated to investigating cryptography and Web3 technologies last year. Stripe co-founder John Collison hinted in November that the company may soon resume. Offering cryptocurrency support.
As Karan Sharma, product manager at Stripe’s crypto business, put it in a blog post on Friday. “While the’store of value’ features of cryptocurrencies often attract the most attention.” He believes the potential of “open-access global financial rails” is “at least equally enticing.” The effect of this is that we are looking into methods to employ cryptocurrency-based platforms. In order to provide more widespread access.”
The Polygon network will host the company’s cryptocurrency payouts feature. Which is a so-called “Layer 2” solution that sits on top of the Ethereum network. And allows transactions to be processed more quickly and at a reduced cost. Bitcoin, ether, and other cryptocurrencies have come under fire. For having slow transaction speeds and excessive transaction fees. Among other things.
‘We intend to expand our support for new rails and payout currencies in the future,’ Sharma stated.
As Stripe enters the Crypto World they are accepting digital currencies on its platform
Despite the fact that Stripe is not the only compan. That is opening up its platform to digital currencies. The company is, in many ways, late to the game. All of the major payment processors – Visa, Mastercard, PayPal, and others. They have made announcements about their own initiatives in the field. That was back when the value of digital currencies was still increasing.
Previous price declines in numerous major cryptocurrencies have come. As a result of their recent record highs. Bitcoin, the world’s most valuable cryptocurrency. It has fallen by more than 40% from its top of about $69,000 in November. According to Coin Metrics statistics, bitcoin was trading at roughly $39,724 on Friday. Down about 6 percent in the last 24 hours from its last high.