BitPay Now Supports Settlement in Stablecoins USDC and GUSD

Siamak Masnavi

On Monday (15 October 2018), blockchain payment processor BitPay announced via a press release that merchants could now choose to receive settlement in two regulated fully-collateralized stablecoins: Circle's "USD//Coin" (USDC) and the Gemini digital asset exchange's "Gemini Dollar" (GUSD). One stablecoin notable for its absence in the announcement was Tether (USDT), the world's most popular and most unstable fiat-backed stablecoin.

BitPay says that this news means that merchants  around the world who are sing BitPay to accept Bitcoin (BTC) and Bitcoin Cash (BCH) "now have the additional option to receive their settlement in a US dollar-equivalent cryptocurrency."

BitPay gives three reasons for choosing its blockchain payment processing service:

  • Unlike with credit cards that can cost up to 3% "in processing fees on every transaction", with BitPay, businesses can receive funds in eight fiat currencies (direct bank deposits in 38 countries) and four cryptocurrencies (direct bank deposits in 240 countries) for a flat 1% settlement charge.
  • With BitPay, businesses can "receive payment in any amount, from anywhere in the world, from any computer or mobile device."
  • With Pay, businesses can avoid worrying about "chargeback fraud and identity theft"; customers "can pay without handing over sensitive personal information, and refunds are made through the merchant — no chargebacks."

The following diagram illustrates how the payment process works (in the case of a Bitcoin payment): 

BitPay diagram.png

Stephen Pair, co-founder and CEO of BitPay had this to say about today's introduction of settlement via stablecoins:

“BitPay was founded to make payments faster, more secure, and less expensive using Bitcoin for organizations around the world. The introduction of the USDC and GUSD stable coin offers BitPay customers a new alternative to holding Bitcoin and Bitcoin Cash by offering a stable coin option.”

BitPay says that the main benefit of settlement via fiat-backed stablecoins is that businesses now have "a non-volatile settlement solution that does not rely on traditional bank wires", and that it enables businesses around the world to "receive international payments faster and more economically than traditional bank wires." 

Featured Image and Diagram Courtesy of BitPay

Cannabis Shops Turn to Crypto Apps Amidst Coronavirus Cash Shortages

Michael LaVere
  • Cannabis shops in Boulder, Colorado are using bitcoin payment app Strike to conduct "contactless" exchanges.
  • Cash shortages and lack of sanitation are causing businesses to find alternative means for transaction. 

Cannabis shops are using bitcoin payment services to conduct business in place of fiat amidst the coronavirus pandemic. 

According to a report by CoinDesk, cannabis dispensaries in Boulder, Colorado have been onboarded to the closed beta for Strike, a bitcoin payment service application founded by lighting network supporter Zap. 

Zap, founded by Jack Mallers, has been operating a closed beta for the payment application Strike which allows users the option of sending bitcoin or dollars and receiving funds in their bank account. The application uses a simple QR code interface, similar to Venmo, that allows users to send funds without having prior knowledge or expertise with bitcoin. 

Mallers said, 

Every Strike user is given a public domain at strike.me. We’re using Lightning for really fast online settlement of value transfers. … It’s also beneficial for privacy on the sender’s side.

Johnny Kurish, general manager at Boulder’s Helping Hands Herbals cannabis shop, said the application allowed his dispensary to process $1,000 worth of purchases since being added to the beta last week. 

Kurish said the dispensary will switch to only accepting Strike payments, which allow for contactless exchanges in light of the coronavirus pandemic. 

He said, 

We’re really lucky to have curbside drop-offs. We check the ID through the roll-up window, deliver the cannabis to a podium in front of the car. We’re happy to reopen with an option that’s safe for our staff.

Featured Image Credit: Photo via Pixabay.com