Ride-hailing company Uber Technologies is considering integrating stablecoin payments into its platform, signaling a potential shift in how customers pay for rides and deliveries. According to a Bloomberg report, the move aligns with the company’s ongoing exploration of crypto as a payment option.
Why Consider Stablecoins for Payments?
In an earlier interview, Uber CEO Dara Khosrowshahi stated that the company would “absolutely” accept cryptocurrencies in the future. However, he emphasized that the timing was not right due to concerns over high transaction fees and environmental impacts associated with specific cryptocurrencies such as Bitcoin.
Notably, Stablecoins, such as USDC and USDT, offer a more stable and cost-effective alternative to other crypto assets, making them an attractive option for companies like Uber. These digital assets are pegged to fiat currencies, which reduces volatility and potentially addresses some of the concerns previously highlighted by Khosrowshahi.
Nonetheless, Uber has not provided a specific timeline for implementing stablecoin payments. The company hints that such a payment option may become available as its technology matures and regulations become more friendly.
Implications and Concerns
In the U.S., proposed legislation like the Genuis Act aims to establish clear rules for stablecoins, requiring regular independent audits and full reserves. Uber would need to ensure that any stablecoin transactions comply with these emerging regulations, including adherence to anti-money laundering (AML) and know-your-customer (KYC) requirements.
Failure to comply with these regulations could result in fines, legal challenges, or restrictions on Uber’s operations in some markets. For example, in 2024, the transport firm was fined approximately $332 million by the Dutch Data Protection Authority for transferring the personal data of European drivers to U.S. servers in breach of the General Data Protection Regulation (GDPR).
Additionally, concerns are mounting over the security implications, particularly in light of recent real-world crypto thefts involving Uber. In December 2024, Arizona witnessed a case where a man posed as an Uber driver and stole over $300,000 in cryptocurrency from unsuspecting passengers.
Meanwhile, the adoption of crypto payments by traditional businesses highlights the growing acceptance of crypto in commerce. For instance, Lomond School, a co-educational institution in Helensburgh, Scotland, has recently begun accepting Bitcoin as a payment option for school fees.
