Uber May Soon Start Accepting Crypto
- Uber revealed that it could accept crypto payments from its users.
- The CEO, however, dismissed the idea of buying cryptocurrency with the company’s cash.
- He added that the main leverage of Uber is the business they have built and not the investments they have made.
- However, Uber stock price fell on Thursday as it released its fourth quarter earnings.
Uber Considers Accepting Crypto from its Users
Uber, a technology company, has also decided to join the bitcoin mania. Recently, the CEO, Dara Khoswshahi, announced that they are considering cryptocurrencies as a means of payment on their platform. The CEO added that the company is not only doing it as a promotion but that cryptocurrencies, just like any other fiat currency, would be used for Uber transactions.
While interests in cryptocurrencies keep growing, more traditional companies are also looking to invest in digital currencies. Visa, a payment platform, made a recent comment showing interest in cryptocurrency transactions for its cardholder if it becomes generally accepted as a payment means.
Also, Mastercard Inc. made a similar statement that the firm is planning to open its network to crypto transactions but the cryptocurrencies won’t pass directly through the network. Many companies are not just looking to transact crypto but also to include it on their balance sheet. One such company is Twitter, as it recently revealed it would be adding Bitcoin to its balance sheet.
Uber Dismisses the Idea of Adding Bitcoin to its Balance Sheet
However, Uber CEO said that they are dismissing the idea of converting the company’s cash into bitcoin and will keep its “cash safe.” This news came as a surprise to many, considering the current price of Bitcoin and those large traditional companies investing in the coin.
The majority of the companies that have invested in bitcoin have seen increase in their stock price. Ever since Tesla invested in bitcoin, its stock price has significantly risen. The stock price of MicroStrategy, a significant pitcher of cryptocurrencies, also increased by 154%.
Similarly, the latest company to invest in Bitcoin is BNY Mellon, which planned to launch its digital currency division on Thursday. The bank has also experienced a rise in its stock price. Contrarily, since Uber released the news that they won’t be adding bitcoin as part of their capital structure, their stock price has dropped.
The news of Uber revealing that it won’t be buying cryptocurrency with its cash came after Tesla made $1.5 billion investment in bitcoin. However, Uber CEO said the company could accept digital currencies as payments from its users but won’t be buying the bitcoin with the cash on its balance sheet.
Crypto evangelists believe that despite bitcoin’s volatility, the value of the cryptocurrency has risen significantly over time. As a result, crypto enthusiasts, such as MicroStrategy CEO, believe that buying bitcoin is a better investment for companies than stacking the cash up in their balance sheet.
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