Uber Eyes Stablecoin Integration to Slash Costs of Global Transactions

Uber is reportedly reconsidering the implementation of stablecoins. At the Bloomberg Tech conference this week in San Francisco, CEO Dara Khosrowshahi outlined the company’s continued investigation into stablecoin applications. The aim is to lower expenses associated with international money transfers, and the exploration of stablecoins is a part of this strategy. In recent years, stablecoins have attracted significant attention from both governmental bodies and institutional investors, leading several nations to contemplate regulations for their oversight.

A Bloomberg article published on June 5 highlighted Khosrowshahi’s views, stating that stablecoins could provide a «practical benefit» in lowering financial costs.

Stablecoins are a category of cryptocurrency designed to sustain a stable value. Examples like Tether and USDC are pegged to fiat currencies, such as the US dollar, which protects these assets from market volatility and risks. Cryptocurrency traders frequently utilize stablecoins to move funds across various tokens.

During the interview at the Bloomberg event, Khosrowshahi conveyed that Uber is planning to examine the potential of stablecoins.

«While opinions on Bitcoin may vary, I believe stablecoins hold significant promise, especially for global firms like ours that are handling money globally to effectively cut costs,» Khosrowshahi pointed out. Clips from the event have also circulated on social media platforms.

This statement by Khosrowshahi comes as the US government advances towards stablecoin regulations. The proposed legislation, known as the Guiding and Establishing National Innovation for US Stablecoins (GENIUS) Act, is currently under review. In May, the House Financial Services Committee propelled the bill to the Senate for final approval, which is still pending. The regulations aim to clarify guidelines for stablecoin issuers to enhance user protection.

In May, Hong Kong approved its own Stablecoin Bill, intending to create a licensing framework for issuers of fiat-linked stablecoins.

Payment leaders like Mastercard and various banks are also investigating stablecoin opportunities amid the rising enthusiasm in the sector.

In May, Meta announced its exploration of stablecoins to facilitate payouts for international creators and minimize transfer costs.