24 Jan Stripe is Dropping Bitcoin Amid Growing Difficulties With The Currency
Online payment processor Stripe announced on Twitter today, that it will no longer support Bitcoin (BTC) payments on its platform, citing ‘fewer and fewer use cases for which accepting or paying with Bitcoin makes sense’.
Stripe product manager Tom Karlo released a gentle-yet-cutting blog post this afternoon outlining the company’s decision to break up with the world’s largest cryptocurrency. ‘Over the past year or two,’ he explains, ‘Bitcoin has evolved to become better-suited to being an asset than being a means of exchange.’ Not entirely useful for a payment application, therefore.
Karlo goes on to explain that ‘substantially’ higher transaction times and an increase in failure rates have led to a decrease in customer desire to use the coin on the Stripe platform. Ouch.
This is in stark contrast to four years ago when Stripe made headlines after announcing it would be the first major online payment platform with Bitcoin integration back in March 2014.
The news comes amid a turbulent couple of weeks which has seen the cryptocurrency market as a whole take a beating. Governments have begun introducing legislation to regulate digital currency trading, causing investors to step back.
But don’t start writing a furious e-mail just yet. For those of you who trade frequently with Bitcoin via Stripe, there is still plenty of time to make some last-minute transactions. The company is entering a ‘wind-down’ phase with Bitcoin support, working with affected users to ensure a ‘smooth transition’ before they stop processing the currency completely on April 23rd, 2018. In addition, Stripe remain ‘very optimistic about cryptocurrencies overall’, and suggest that they are interested in enabling support for ‘promising’ cryptocurrency efforts in the future. So it’s not all doom and gloom.
Stripe, like Paypal (NASDAQ:PYPL), is an online payment system whereby users can accept transfers online and in mobile apps. The Irish company have business clients around the world and handle billions of dollars per year. It isn’t the first company to decide to start and then stop accepting Bitcoin as a payment method; Valve’s ‘Steam’ gaming platform ended Bitcoin support on December 7th last year amid market volatility.
Bitcoin was in the green today after yesterday’s slump, reaching a peak of $11,377.60 USD.
Featured Image: Mashable