Uber Is Looking Into Stablecoins to Speed Up Global Transfers: CEO

As stablecoins gain increasing traction, global mobility platform Uber is exploring their potential to facilitate faster and cheaper cross-border transactions. At the Bloomberg Tech Summit in San Francisco, CEO Dara Khosrowshahi identified stablecoins as a game-changer for global companies, expressing a preference for them over Bitcoin. Are stable tokens really a game-changer?

Uber to Embrace Stablecoins, Says CEO Khosrowshahi

On June 5, Uber CEO Dara Khosrowshahi revealed the ride-sharing giant’s decision to embrace stablecoins for faster and cheaper global money transfers. Khosrowshahi stated,

“We’re still in the study phase, I’d say, but stablecoin is one of the, for me, more interesting instantiations of crypto that has a practical benefit other than crypto as a store of value. So that’s super interesting to us, and we’re definitely going to take a look.”

Notably, stablecoins are crypto assets designed to maintain a “stable” value compared to highly volatile cryptocurrencies like Bitcoin. Backed by stable assets like fiat currencies or gold, these tokens are gaining popularity as a hedge against market fluctuations. For the Uber CEO, stable tokens are “quite promising, especially for global companies that are moving money around globally to create a mechanism for us to essentially reduce costs in terms of moving money internationally.”

As he prefers stable tokens over Bitcoin, the CEO noted, “Obviously, you can have your opinions on Bitcoin, but it’s a proven commodity, and you know, people have different opinions on where it’s going.”

Stablecoin Adoption Surges Despite Lack of Regulatory Clarity

Despite the increasing adoption of stablecoins in the US, the country lacks a clear regulatory framework for them. Recently, President Donald Trump took the initiative to establish comprehensive guidelines for stablecoin regulation. Though the U.S. House of Representatives and the U.S. Senate introduced the STABLE Act and the GENIUS Act, their future hangs in the balance.

Interestingly, the surge in demand for stable tokens coincides with growing regulatory uncertainty in the US. Bitcoin advocate Peter Schiff has criticized the rising use of stablecoins, citing concerns over the unclear future of the GENIUS Act.

In 2021, Uber’s CEO expressed openness to accepting Bitcoin and other cryptocurrencies after analysing their advantages. However, he ruled out investing in Bitcoin for the company’s treasury. The next year, the CEO confirmed that the platform would “absolutely” accept cryptocurrencies in the future, but cited concerns over high transaction costs and environmental impact. And finally, they have embraced stablecoins, recognizing their potential for fast and low-cost transactions.

Other global companies are also exploring the vast opportunities of stable tokens. For instance, Stripe introduced new products that harness the power of AI and stablecoins to fuel business growth.