Uber is exploring the possibility of using stablecoins to optimize global money transfers. CEO Dara Khosrowshahi highlighted the advantages of stablecoins over traditional payment systems.
The Potential of Stablecoins for Business
At the Bloomberg Tech conference in San Francisco, Dara Khosrowshahi noted that stablecoins offer practical benefits for global companies. He mentioned that they can significantly reduce costs associated with international transactions, which often come with high fees and delays due to intermediaries and currency conversions.
Moreover, stablecoins are capable of settling transactions in seconds, reducing fees by about 80%.
The Importance of Stablecoin Regulation
Uber's exploration of stablecoins is occurring amidst an active legislative process aimed at creating a clear regulatory framework that could facilitate adoption and reduce legal uncertainties. The GENIUS and STABLE Acts focus on AML/KYC standards and reserve requirements, ensuring compliance with federal oversight. However, concerns persist regarding the potential failure to regulate offshore issuers like Tether, creating what is known as the "Tether loophole."
Competition in the Stablecoin Market
It is also noteworthy that besides Uber, other prominent companies such as PayPal, Visa, Mastercard, and Stripe are considering the use of stablecoins. For instance, PayPal has already launched its own stablecoin, PayPal USD, which is pegged to the US dollar and built on Ethereum. Visa is actively exploring the use of stablecoins for settlement and cross-border payments, conducting pilot projects with USDC on Ethereum and Solana.
Uber's exploration of stablecoins underscores the growing interest in this technology within the business sector. Given the uncertainty surrounding legislation in the US, successful adaptation of stablecoins could significantly enhance the efficiency of international payments.
