BitPay To Allow Merchants Accept Settlements In USD-Pegged Stablecoins

Oct 16, 2018 at 19:00 Update Date :Oct 16, 2018 at 19:00 UTC

The largest blockchain provider, BitPay is now planning to allow merchants to accept settlements in USD backed stablecoins like Gemini Dollar (GUSD), and Circle’s USD Coin (USDC).

Until now, users were receiving payments in Bitcoin (BTC) through bank transfer. Stephen Pair, the CEO and the co-founder of BitPay, said that the provider was founded in order to make payments secure and faster and to make them less expensive for organizations who are using Bitcoin across the world.

Until now, firm’s merchants could only receive settlements in BTC Cash and BTC and when the prices of BTC changes, it is hard for a business which doesn’t have access to cryptocurrency exchanges.

As per the reports, in September, regulators of the U.S. approved USD-backed Gemini Dollar of Winklevoss Twins.

Despite being the leader among the stablecoins and the world’s eighth largest cryptocurrency, BitPay dropped the inclusion of Tether in the selection. And as per the Monday morning, Tether lost its dollar backed as it traded on cryptocurrency exchange like Bitfinex for less than 90% and therefore raising the concern about its USD fully pegged nature. Paxos Standard, another stablecoin launched by a cryptocurrency firm Paxos of New York.

As per CoinMarketCap, during the early days in the market, firm’s trading volumes outshined to those of GUSD and USDC.

Tether came under interrogation earlier this year when there was a suspicion over the price manipulation where Bitcoin’s all-time high values are linked with Tether flooding the market with the coins. Later these claims were dismissed by a law firm which stated that assets of the company exceed the balance of fully pegged USD Tethers. After a few months, Tether is again trading at less than a dollar.

USDC is a product which is initially spearheaded by Circle. Circle, is a $3 billion cryptocurrency firm pegged by Goldman Sachs and Bitmain.

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