18.10.2021

Uber allows Bitcoin to be used as a means of payment for rides

Uber CEO Dara Khosrowshahi said the company could soon allow its customers to pay for rides with Bitcoin and other cryptocurrencies.

In an interview with CNBC, Khosrowshahi spoke about Uber’s new strategies, one of which, among other things, covers the cryptocurrency market. The company’s management wants to test the scenario of introducing blockchain assets into its business model and assess the potential profitability of this idea.

Ride Uber with Bitcoin

Here is one of the quotes from the head of the platform from an interview with CNBC, in which he spoke about his thoughts on cryptocurrencies. The cue is from Decrypt .

Just as we accept all types of local currencies, we will look at cryptocurrencies and / or Bitcoin in terms of a medium for transactions. It’s good for business, it’s good for our drivers and passengers.

That is, the platform’s management allows the option of introducing cryptocurrencies. This means that if the idea is implemented, users will be able to pay for trips in coins.

However, questions arise here. Firstly, the block time in the network of the first cryptocurrency – that is, the speed of adding a new block to the blockchain, after which transactions in it will be considered valid – is ten minutes. This means that either the user will have to pay immediately upon getting into the car, or the company will wait for the coins to arrive at their addresses. And as we know from examples of cryptocurrency exchanges, to confirm deposits, you need to wait for at least two or three confirmations, and this can take more than half an hour.

Secondly, the situation with the commissions, which are now quite high, is not clear. We checked the latest data: yesterday the average cost of a transfer on the Bitcoin network was $ 28. And this is too much to pay the equivalent of ten dollars for a trip.

Average commission chart in the Bitcoin network

Perhaps the user will need to “replenish the account” in BTC in advance, and only then the funds will be debited from there.

At the same time, Uber does not seek to follow in the footsteps of Tesla and invest in BTC. Here is a quote from a company representative.

We had a discussion about this and the idea was quickly rejected. We’re going to keep our money safe. We do not speculate.

This means that it will most likely not work to see Uber on the list of Bitcoin investors in the near future. Although, in theory, the introduction of payment in BTC can change this situation – at least in this case, the company will have coins at its disposal.

Uber CEO Dara Khosrowshahi

Tesla’s example also didn’t impress Uber partner and financial giant called Adyen, along with Netflix and Facebook. All of these companies do not yet consider crypto as a potential investment or a means of accepting payments. Adyen CEO Peter van der Das noted that the cryptocurrency market is too volatile for such a scenario.

Exclusive taxi for cryptocurrency lovers

Fortunately, crypto adoption doesn’t end with Uber. America’s oldest bank , Bank of New York Mellon, has announced plans to store and support transactions in bitcoins and other cryptocurrencies as an asset manager on behalf of its clients. As Cointelegraph clarifies , the decision was made by large investors and senior management of BNY Mellon’s clientele. The bank perceives the height of the bullish trend in the crypto market as an excellent opportunity to expand the range of funds for potential profit.

Note that BNY Mellon is not the first major organization to focus on digital assets. However, it is the first national depository bank to commit to introducing cryptocurrency storage for its clients in the short term, that is, “later this year.”

We believe that all such news is just the beginning of a new global trend in the spread of Bitcoin among large organizations. In the highest circles, they realize the potential that the first cryptocurrency and other blockchain assets have, so the leaders of many companies do not want to lose it anymore. And the more such players join the crypto market, the more massive the industry will become. Well, this is an unambiguous positive for her.

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