China-based crypto mining chip designer Nano Labs has announced that it will now accept Bitcoin as payment for its goods and services. Surprisingly, this move by the publicly traded company comes at a time when crypto transactions remain banned in its home country.
Nano Labs Adopts Bitcoin Payments
Nano Labs mentioned it has created an account with the American exchange Coinbase to facilitate Bitcoin payments. The registration will enable the company to securely process crypto transactions, providing clients and partners a faster payment experience.
The company claims its primary reason for accepting Bitcoin payments is to cater to the growing demand for crypto transactions in the technology sector. It believes that by embracing Bitcoin, the Chinese firm will enhance its global transaction capabilities, offering its clients and partners greater payment flexibility.
The company’s announcement claims that the latest crypto stance aligns with its long-term vision of being at the “forefront of technology advancements and delivering added value to clients worldwide.”
Why Choose Coinbase?
As Nano Labs embraces Bitcoin payments through the Coinbase platform, it’s essential to consider potential drawbacks. Crypto transactions can be volatile, with rapid value fluctuations. For instance, if a customer pays the chip designer in bitcoins, its value may drop significantly before conversion to fiat currency, impacting revenue.
Although Nano Labs did not mention it, it is worth noting that the tech firm may have been impressed by Coinbase Commerce’s real-time and automatic conversions, which fixed the challenge mentioned earlier. The American exchange claimed that the payment system eliminates slippage during market fluctuations, benefiting businesses like Nano Labs.
Additionally, Nano Labs can navigate China’s crypto ban by utilizing Coinbase’s payment processing system while still accepting Bitcoin payments. This is possible because Coinbase operates outside China’s jurisdiction.
Crypto Payment Adoption Keeps Growing
Crypto payments are gaining traction globally, with various industries and governments embracing the technology. El Salvador made Bitcoin legal tender in 2021, while the Central African Republic followed suit in 2022. Recently, the Dubai Court of First Instance recognized crypto as a valid form of payment for employee salaries.
Companies like Microsoft, AT&T, and Tesla have also started accepting crypto payments. A few weeks ago, Skylux Travel launched a crypto payment platform powered by Triple-A, a US-licensed crypto payment company. As the BTC price soars, more firms might be interested in adopting it as a means of transaction.
