Why did BitPay invest significant time and resources to fully incorporate stablecoins into our platform?
Because technology like stablecoins is why BitPay started. The long answer needs more explanation. What are stablecoins and why would they benefit businesses?
What are Stablecoins?
The three stablecoins BitPay supports are ERC-20 tokens that function with the efficiency of a cryptocurrency but are pegged to the United States Dollar, a stable asset. An ERC-20 token is a smart contract following the ERC-20 standard. A feature of the ERC-20 standard is the ability to launch unique tokens on the Ethereum network.
One PAX, GUSD, or USDC are each worth $1.00 USD, and are fully redeemable for $1.00 USD through their respective platforms which conform to US and NYC financial regulations.
The Benefits of Stablecoins
BitPay settles to businesses in the US and Western Europe through a combination of ACH, SEPA, and bank wires. These methods are stable, but can take 1-2 business days at a minimum. The alternative for the rest of the world is a cryptocurrency settlement which is fast but subject to changes in value.
Stablecoins provide the speed of cryptocurrency with the stability of the United States Dollar. This allows businesses in the West to receive settlement in less than an hour and any business around the world to receive stable settlement pegged to an internationally accepted currency. This will further help companies like Center Source as they expand globally.
BitPay believes stablecoins could become a large part of the banking system of the future. They offer the benefits of blockchain technology through the Ethereum network while providing the stability and trust of the US Dollar.
In 2011, BitPay saw the potential for Bitcoin to revolutionize the financial industry. Seven years later, we still believe in blockchain technology’s ability to change the financial industry, and we still are working to make that future a reality today. This is especially relevant for industries with digital goods or services that do not have to worry about the logistics of shipping (IT, Software, Domain & Hosting, Gaming, and many more).
Interested in the impact stablecoins and cryptocurrency could have for your business? Contact our sales team to learn more.