Uber to accept bitcoin in future
Dara Khosrowshahi, CEO of Uber told CNBC today that his company may start accepting bitcoin and other cryptos as a form of payment for riders.
“Just like we accept all kinds of local currency we are going to look at cryptocurrency and or Bitcoin in terms of currency to transact. That’s good for business, that’s good for our riders and our eaters,”
However, unlike Tesla, Uber is not going to risk its cash and cash equivalents by speculating in bitcoin investments via holding them on their balance sheet.
“It was a conversation that happened that has been quickly dismissed. We’re going to keep our cash safe. We’re not in the speculation business.”
What remains to be seen is how Uber will convert their bitcoin payments into cash and how quickly they will do this. Bitcoin, known for its violent price movements could either increase Uber’s value of bitcoin held after a ride or quickly decrease it depending on the day.
Moreover, it would seem as if Uber would need to hire a bitcoin trader to quickly exit their position in bitcoin if there is a mass adoption of customers transacting with this new internet currency.
Despite the transactional headache issue one thing is certain, bitcoin is going more mainstream after the Tesla investment. With more individuals, corporations and entities using the cryptocurrency, trading volumes will increase, resulting in a higher price and more likely potential the currency of the internet is here to stay.