Leading blockchain and bitcoin payment provider Bitpay has announced that it would be providing its merchant’s option to receive settlement in recently launched stablecoins of Circle Financials, Centre USD and Gemini Exchange’s Gemini Dollar. This move by Bitpay comes in anticipation of the rise in demand of stablecoins.
Merchants and businesses can now receive settlement in a stablecoin
The Atlanta-based BitPay made the announcement on October 15, 2018, explaining that it will allow merchants in 190 countries to accept international payments without relying on costly, time-consuming wire transfers.
With this newly added feature, merchants and businesses who use Bitpay services and currently accept bitcoin and bitcoin cash will now have the additional option to receive their settlement in a US dollar-equivalent cryptocurrency. This new service will now give these businesses a non-volatile settlement solution that does not rely on traditional bank wires.
Bitpay users will have the option to take their settlement proceeds in bitcoin, bitcoin cash, a bank transfer, or now a stable coin (USDC or GUSD). Settlement by bank transfer is initiated the next business day and cryptocurrency is settled the next day, 365 days a year.
BitPay was founded to make payments faster, more secure, and less expensive using Bitcoin for organizations around the world,” said Stephen Pair, the company’s co-founder, and CEO.
“The introduction of the USDC and GUSD stable coin offers BitPay customers a new alternative to holding Bitcoin and Bitcoin Cash by offering a stable coin option.”
The ability to settle in stablecoins is ideal for businesses in the Asia Pacific, South America, and Africa regions according to BitPay
Notably absent from the list of supported stablecoins is tether (USDT), the dominant token in this market niche and the eighth-largest cryptocurrency overall. Also absent is Paxos Standard (PAX), another major NYDFS-regulated stablecoin launched by New York cryptocurrency firm Paxos.
BitPay as a payment service allows merchants and businesses to receive international payments faster and more economically than traditional bank wires. It gives customers the option to skip costly, complicated cross-border wire transfers and receive or send international payments with BitPay with accuracy, reduced fraud risk, and quick bank settlement. Bitcoin payments dramatically reduce the friction, cost, and time of cross-border business to business payments.
With Bitpay, these new stablecoins will have the unparalleled reach to every Bitpay user spread across 190 countries. If this plan goes successful, USDC and GUSD will have the popularity which the only Tether has been able to garner.
Will Circle’s USDC and Gemini’s Geminis Dollar, with Bitpay, gain the same popularity that Tether has been able to garner? Do let us know your views on the same.
Nilesh Maurya has been associated for past 8 years as an Investment Banker with Omega Capital, a bespoke Investment Banking outfit having offices in Mumbai, New York, Singapore, and Dubai. He has been a regular contributor to business publications such as Business India and Market Express and has been a mentor to many start-up companies. Nilesh Maurya has been associated for past 8 years as an Investment Banker with Omega Capital, a bespoke Investment Banking outfit having offices in Mumbai, New York, Singapore, and Dubai. He has been a regular contributor to business publications such as Business India and Market Express and has been a mentor to many start-up companies. Follow him on Twitter at @KoinKing1 or connect with me on linkedin.