The CEO of Stripe, Patrick Collison, has said that stablecoins and central bank digital currencies (CBDCs) will be important in international payments. CBDCs and stablecoins have become increasingly popular over the past year.
Stripe CEO says stablecoins and CBDCS will support global payments
Collison pointed to the ability of these assets to standardize know-your-customer (KYC) and anti-money laundering (AML) practices. Collison shared these thoughts during a meeting with Mark Carney at the Institute of International Finance event.
One of the countries that have supported real-time payments is the United Kingdom. SEPA Instant payments are now being launched in Europe, and it is expected to also roll out in the US in 2022.
Collison also notes that increasing the efficiency of clearing houses will not have the same appeal as blockchain and CBDCs. However, it lowers costs. If the UK can do this while adopting open banking, Collison believes it could go a long way in enabling innovation.
Nevertheless, there is still the issue of the speed CBDCs and stablecoins can bring. In the future, when payments are made in real-time, stablecoins and CBDCs will not have a competitive edge in terms of speed. He added that the benefits of these innovative technologies would be seen much later.
Growth in crypto-related payment services
Web2 companies have been tapping blockchain technology to not only attract a new stream of users but also be part of the buzzing web 3.0 & crypto sector. Stripe has been leading the way and has already made notable progress in the area.
In April, creators on Twitter were allowed to start accepting tips from their followers in the form of USDC stablecoin. According to Collison, these services could receive higher adoption in Western Europe and North America. These were markets that could generate more revenues because they were more understood.
However, he said that focusing on one market and leaving out another “doesn’t make any sense.” According to him, all Twitter users needed access to the best payment options. This presented an opportunity for Stripe on Twitter, where users from any country could use USDC as a payment on the platform provided they pass KYC, AML, and counter-terrorism standards.
Stripe’s foray into digital assets has not just started recently. The company was among the original firms that participated in creating Libra, a cryptocurrency project spearheaded by Facebook. However, after regulatory pressure on the project grew, Stripe pulled out of the Libra project alongside other firms like PayPal, Visa, and Mastercard.
In March this year, Stripe unveiled payment services targeting cryptocurrency businesses. The service allowed crypto firms to accept fiat deposits and payouts in local fiat currencies.
Stripe now supports crypto businesses: exchanges, on-ramps, wallets, and NFT marketplaces. Not just pay-ins but payouts, KYC and identity verification, fraud prevention, and lots more. https://t.co/3X173SkdPd
— John Collison (@collision) March 10, 2022
Google is the latest Web2 giant firm to adopt crypto payments. The company partnered with the Coinbase exchange to accept crypto payments for its Google Cloud services. The company will roll out this payment option next year, where Google Cloud users will pay using several cryptocurrencies.
Google has also been integrating crypto features in its search engine. The tech giant recently made it possible for Ethereum wallet balances to be visible when an address is searched on the search engine. Google also displayed a countdown for the Ethereum Merge that happened mid-last month.
On the other hand, the talk of CBDCs has heated up as many countries seek a more efficient way to support cross-border payments.
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