Stripe Digital Payments Giant Gives Up On Bitcoin & Blockchain Payments
Why Has Stripe Given Up On Bitcoin
A long time ago, in 2015, Stripe, a digital payments giant of the market, has decided to release a tool for merchants that intended to start accepting Bitcoin as a way of payment. Recently, the golden era of Bitcoin on Stripe Digital Payments has come to an abrupt end, though, as Stripe pulled the plug and decided that it was not a good idea to receive payments in Bitcoin anymore.
Why has this happened? The COO of the company, Clair Hughes Johnson, has recently told the media some of the reasons why the service had this end after three years. According to her, blockchain-based payment services were too slow, overhyped and very impractical.
She affirmed that transactions took from three to five days last December when Bitcoin was super popular and that they still take about an hour today. Because of this, she stated that there was such a huge backlog that the merchants had to even file a second transaction sometimes because the price of Bitcoin changed too much while the transaction was underway.
“The Killer App For Bitcoin Out There Today Is Ransonware”
During the interview, Johnson was tough on Bitcoin. She questioned whether there is a mainstream purpose for the technology and has stated that criminals are the ones who benefit the most from the token, as ransonware would be the “killer app” for Bitcoin.
Johnson does not even believe in the blockchain technology. According to her, the industry “jumped the shark” and blockchain started to be a buzzword with a magical aura on it. Her prediction is that blockchain will not be adopted by the mainstream in at least a decade if it ever does because there are many other database tools rapidly improving.
Not Everybody Is Pessimistic On The Blockchain Technology
Bridget Van Kralingen, SVP of Global Industries, Platforms and Blockchain at IBM doesn’t agree with Johnson. According to her, the technology is already offering great options for supply chains, identity verification and payments across borders.
The case for the blockchain can be made because of the immutable nature of the blockchains, she believes. As the records cannot be tampered with, they can be a very useful tool for some industries because they will make the processes more secure and faster.
According to her, IBM, as a whole, is optimistic about cryptos. The company has recently started to test is “stable coin” which will work like Tether and have a value based on the USD and avoid volatility, which plagues Bitcoin today.
Others like Asheesh Birla, of Ripple, believe that there is a huge market of unbanked people in underdeveloped countries that can certainly get excellent results by using cryptos and there is the chance of creating a big market for that.