BitPay now supports three USD-backed stablecoins, avoids Tether

Blockchain payment services provider BitPay has added support for three USD-backed stablecoins: GUSD, PAX, and USDC

BitPay, the world’s largest blockchain payment services provider, has announced it is rolling out support for three USD-backed stablecoins.

These include the Gemini Dollar (GUSD), the Paxos Standard Token (PAX), and Circle’s USD Coin (USDC).

Market-leading Tether (USDT) is notably not among BitPay’s latest offering.

BitPay now processes payments for six cryptocurrencies

In a recent press release, BitPay said the move to support these three stablecoins would allow consumers to spend USD-pegged cryptocurrencies at businesses around the world, including the likes of Microsoft and Avnet.

They’ll also be able to transact quicker and with greater flexibility. Unlike many bank wires and other payment solutions, as soon as wallet-to-wallet cryptocurrency transfers are received, the funds can be spent immediately.

So, why choose GUSD, USDC, and PAX? BitPay maintains that these three stablecoins have all grown in terms of usage. The payment processor also maintains that they combine the stability of the dollar with the efficiencies of cryptocurrencies.

Since transactions are recorded on a decentralised ledger, they are transparent and devoid of the type of fraud associated with credit cards. They also eliminate the volatility of cryptocurrencies like Bitcoin and Ether, making a much more efficient means of payment.

“Accepting or paying with stablecoins opens up new possibilities for global businesses that require the stability of the dollar but the security and efficiency of blockchain payments,” said Stephen Pair, BitPay’s CEO and co-founder.

“Businesses can invoice international customers without the need for costly, complicated cross-border wire transfers. Customers can send and receive payments using fast, efficient, and volatility-free dollar-pegged stablecoins.”

Joshua Rawlins, managing director of financial operations at Gemini, said: “The pairing of crypto payment acceptance with a stablecoin like the Gemini dollar – which combines the creditworthiness and price stability of the US dollar with blockchain technology – is powerful.

“Merchants benefit from faster, cheaper, and fraud-resistant payment settlement and consumers benefit from the ease of using cryptocurrency without worrying about price fluctuations.”

No support for Tether at the current time

Despite being the fourth-largest cryptocurrency with a market cap of over $4bn and the leading USD-backed stablecoin, BitPay has not included support for Tether. Why?

BitPay has had its business decisions called into question in recent times, from the freezing of Bitcoin donations to its failure to support major wallets.

Pending lawsuits over Bitfinex and Tether with regards to market manipulation may be keeping USDT off the books for the current time.

Disclaimer: The views and opinions expressed by the author should not be considered as financial advice. We do not give advice on financial products.

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