BitPay, the U.S. payment processor, has now started supporting stablecoins, making it possible for merchants to receive settlements in Circle USD Coin and Gemini dollars.
Benefitting from blockchain technology
According to an announcement published on October 15, merchants using the BitPay payment platform can now receive settlements from all over the world, regardless of whether they have bank accounts or not (due to the stablecoins being stored on the blockchain). BitPay says that they can issue settlement for USDC and GUSD within 24 hours after a merchant acquires enough settlement balance, which would currently mean at least 20 USDC or 20 GUSD:
Until now, though, BitPay merchants without supported bank accounts (particularly in emerging markets like Asia and South America) could only receive settlements in bitcoin or bitcoin cash. These cryptocurrencies are great for fast, cross-border settlements, but they do carry a price volatility risk. A price change in bitcoin and bitcoin cash can be hard for businesses that don’t have reliable access to cryptocurrency exchanges.
BitPay was founded in Atlanta, Georgia in 2011 and offers payment services for both bitcoin (BTC) and bitcoin cash (BCH). It boasts of a customer base of 20,000 businesses globally. USDC and GUSD are Ethereum (ETH) blockchain-based stablecoins that are issued by regulated crypto exchanges Circle and Gemini. Stablecoins are pegged at a 1:1 ratio to the U.S. dollar in order to reduce the risk of volatility.
Cryptocurerencies at a ‘defining moment’
Last month, Sonny Singh, BitPay’s CCO, went on record saying that cryptocurrency markets are currently riding on a new stage of progress that features a certain ‘catalyst’ or ‘defining moment’. He further noted that he doesn’t see any hope of altcoins ever ‘coming back’ to their previous prime levels, while at the same time predicting that bitcoin will experience a comeback next year.
As of today, BitPay merchants can now receive all or part of their settlements in form of USDC or GUSD. This is made possible by following a simple process so long as you have a wallet compatible with ERC-20 token storage. All you will need are these four simple steps:
- In your BitPay dashboard, select Settings, then Settlement.
- Click Edit next to Cryptocurrency Address.
- Add your ERC20 wallet address for either USDC or GUSD.
- Save your settlement settings and confirm them in the email you receive from BitPay.
BitPay notes that through this move, they are providing another way through which the blockchain technology can be used to make payments more efficient in the global marketplace.