Stripe may be open to resuming crypto transactions after nearly three years since it announced that it would discontinue processing payments in cryptocurrencies. Three years ago in 2018, Stripe said that it would stop processing cryptocurrency payments because of the inherent volatility and intricacies of the process. But the firm might now be willing to resume soon.
Stripe has made a huge name in the financial services industry by becoming a force to reckon with. Stripe has been able to provide access to local and international payments for customers from a lot of countries. Prior to 2018, Stripe began testing cryptocurrency payments. It went fine for some time before the firm announced that it could no longer cope with it. The feature was closed.
However, in a recent interview, a top executive at Stripe stated that they may be open to resuming crypto transactions in the future. Stripe’s co-founder, John Collison, stated this during an interview at a fintech event that took place in Abu Dhabi. Collison stated that, while cryptocurrencies have made significant progress over the years, certain aspects of their features make them unusable by Stripe.
Collison praised altcoins and their rapid growth in recent years. He mentioned Solana, which he believes will pave the way for the era of simple and easy money transfers.
Crypto Adoption By Payment Processing Firms
The rise of cryptocurrencies has increased their adoption by some of the biggest firms in the payment processing industry. Big names such as VISA PayPal, and even Venmo have integrated cryptocurrencies into their platforms offering users a way to transact crypto safely and easily without leaving their platforms.
The rise of cryptocurrencies means that more financial giants have realized that it is inevitable for cryptocurrencies to be adopted for mainstream financial transactions. The increase in the amount of funding that traditional financial institutions are investing into understanding cryptocurrencies is another indication of the future of the blockchain-based financial system.
But before we get to that era where cryptocurrencies replace the present fiat financial system, certain issues must be addressed and fixed to ensure a level playing ground, and the safety of everyone that wishes to embrace the new system.
Will Payment Processors Face Regulatory Issues?
One of the debated topics in certain circles is the issue of regulatory compliance by payment processors that offer crypto services. Payment processing firms are known to abide by the regulations of every country where they operate and are bound to follow the government directive on cryptocurrencies.
In China, for example, payment processing firms cannot offer crypto transactions because they are now banned by the government. Reports of the Indian government’s plan to ban cryptocurrencies may also see the payment processors in India close any crypto feature on their platforms.
The future of cryptocurrency payment adoption depends heavily on the regulations that governments around the world place on the crypto industry. Several international financial institutions are working to find the best path towards cryptocurrency adoption.