View all newsletters
Receive our newsletter - data, insights and analysis delivered to you
  1. Technology
January 24, 2018

Stripe abandons Bitcoin over price instability

Although Stripe has fallen out of love with Bitcoin, the company has said it is still very optimistic about cryptocurrencies.

By Tom Ball

The payment processing specialist, Stripe, has given up on bitcoin because of its price volatility, stating that it makes it less useful for payments.

Because of this volatility Stripe says merchants have been put off from taking and handling the cryptocurrency, while transactions have also become slow and expensive.

Price fluctuations are directly to blame for the lengthening transaction times; with movements happening so frequently that making the final deal becomes a challenge.

Tom Karlo, project manager, Stripe, said:  “Our hope was that Bitcoin could become a universal, decentralized substrate for online transactions and help our customers enable buyers in places that had less credit card penetration or use cases where credit card fees were prohibitive.”

There has previously been a great of conversation regarding Bitcoin drifting away from being a truly decentralised currency, decisive action has been proposed to try and return it to this state, but it was halted.

“Over the past year or two, as block size limits have been reached, Bitcoin has evolved to become better-suited to being an asset than being a means of exchange. Given the overall success that the Bitcoin community has achieved, it’s hard to quibble with the decisions that have been made along the way,” Karlo said.

Content from our partners
Green for go: Transforming trade in the UK
Manufacturers are switching to personalised customer experience amid fierce competition
How many ends in end-to-end service orchestration?
Cryptocurrency exchange bitFlyer lands in EU
IT jobs boom but skilled candidates failing to apply
Insurtech: Revolut uses geolocation for pay-per-day travel insurance

It is important to note that this move is not a reflection on cryptocurrencies generally, with the volatility of the cryptocurrency being the central reason for this withdrawal of support.

Karlo said: “This has led to Bitcoin becoming less useful for payments… Despite this, we remain very optimistic about cryptocurrencies overall. There are a lot of efforts that we view as promising and that we can certainly imagine enabling support for in the future.”

Stripe will begin slowing its support for Bitcoin immediately and that all transactions involving the cryptocurrency would cease by the 23rd of April.

Topics in this article : , , ,
Websites in our network
Select and enter your corporate email address Tech Monitor's research, insight and analysis examines the frontiers of digital transformation to help tech leaders navigate the future. Our Changelog newsletter delivers our best work to your inbox every week.
  • CIO
  • CTO
  • CISO
  • CSO
  • CFO
  • CDO
  • CEO
  • Architect Founder
  • MD
  • Director
  • Manager
  • Other
Visit our privacy policy for more information about our services, how New Statesman Media Group may use, process and share your personal data, including information on your rights in respect of your personal data and how you can unsubscribe from future marketing communications. Our services are intended for corporate subscribers and you warrant that the email address submitted is your corporate email address.
THANK YOU