Bitcoin’s Killer App Called Ransomware by Stripe’s COO
Stripe the virtual payment gateway managing company, played a special part in the start of Bitcoin back in 2015. It introduced a new tool for merchants to take the cryptocurrency. Then, last April, the company stopped service immediately.
Stripe’s new COO, Claire Hughes Johnson, spoke with Fortune’s Brainstorm Tech Conference on Tuesday that the reason Stripe discontinued service with Bitcoin was because the Blockchain based company is slow and impractical. She also has her doubts on the everyday use of cryptocurrencies and how practical blockchain technology really is.
As of now, she mentioned that settlement times for BTC are about an hour. Last year in December she mentioned there were some that took as long as five days. Merchants often need to make two transactions on a single account of BTC price changes during the time of purchase and clearance.
The Stripe executive also has questions on what role BTC plans on playing in the mainstream area. Bitcoin’s killer app is just ransomware according to the COO.
New Reality for Bitcoin
The COO has an opinion on the users of Bitcoin, a type of reality check who once believed cryptocurrencies like Bitcoin would be as common as ATMs. Along with that, blockchain technology has been promoted too much. The SEC, as she stated, is the proper application of taking action to take control of blockchains running questionable projects, officially calling it a “Jumping the shark moment” for the blockchain.
In her view, blockchain technology also replicates existing data technologies which continually evolve. She then predicts that blockchain technology used for mainstream use is no less than a decade away, if it will even be around then anyway.
Counterpoints Are Made
A note to make is Johnson in no way doesn’t speak on the behalf of all technology observers.
Senior Vice President at IBM, Bridget Van Kralingen, works with blockchain technology, made remarks throughout the conference session about blockchain technology being proven to help verify identities, manage supply chains, and good for making cross-border payments.
She also spoke on the immutable nature of Bitcoin, how it improves speed and security when related to business processes.
On Tuesday, the major company IBM made a public announcement on it’s testing of Stablecoin that is to stay on a one to one value with the United States dollar. The token will be used to stop the volatile nature of BTC and be used as a transaction tool.
Ripple’s senior VP, Asheesha Birla, stated that blockchain technology is now impacting the realm of finances, especially those of emerging markets.
In North America, Birla stated, there is too much banking with all the services like Venmo and PayPal or other credit cards. The recent situation in areas like Southeast Asia however, doesn’t have enough banking. Companies looking to grow in these regions are likely to use blockchain, he stated.