Uber rides the crypto wave

Uber might accept crypto payments
  • Uber CEO Dara Khosrowshahi says the company considers crypto payments.
  • Rules out any rumours of the company investing in crypto in the near future.
  • Move expected to improve ridership and encourage crypto investments.

Uber recently announced that it plans to accept cryptocurrency as a mode of payment for its services. Including but not limited to bitcoin. This move is ostensibly aimed to leverage the current hype surrounding cryptos.

New payment method

The ride-sharing giant already accepts cash, credit or debit cards, PayPal, UPI among several other modes of payment. In the near future, Uber users will be able to pay in style with the exotic crypto-payment method. Uber still has to finalize and address several contingencies before this plan can become a reality. 

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A single Bitcoin is currently valued at about $48,000. The company will have to work out innovative methods to enable users to pay for relatively inexpensive cab rides. Moreover, it also has to surmount the challenge of integrating different cryptocurrencies into a single unified payments interface.

No plans to invest in Bitcoin

Though Uber might accept cryptocurrency as a method for payment, it is not very keen to invest in Bitcoin. CEO Dara Khosrowshahi, in a press release, stated that the company had no serious interest to invest in Bitcoin at this point of time. Tesla bought $1.5 billion worth of Bitcoins. Uber seems to be wary to invest in a highly volatile stock as Bitcoin. Uber denied to give in to speculation. It remained firm in stating, that Bitcoin would not be invested in at the cost of their cash.

Diem stablecoin association

Uber has been a valued member of the Libra (currently Diem) stablecoin association from as early as October 2019. Diem is Facebook’s attempt at launching a cryptocurrency by leveraging the power of blockchain. Diem (previously Libra) is a stablecoin, which implies that it maintains a stable value relative to the price of a particular asset. Uber is one of the members of the Diem association. Hence, it is also likely that Uber will push for using Diem in its transactions. As Diem is currently tied to the US dollar, it would not face many roadblocks which Bitcoin faces now. Diem hasn’t been officially released yet. Uber will have to wait a while longer before it can introduce Diem as a mode of payment.

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Andrew Smithhttp://thecoinrepublic.com
Andrew is a blockchain developer from his education and developed his interest in the cryptocurrencies while his post-graduation. He is a keen observer of details and shares his passion for writing along with being a developer.

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