Payment Service Provider BitPay Facilitates Settlement in Stablecoins
BitPay, the US-based cryptocurrency payment processor, has begun accepting stablecoins, according to a press release. Specifically, BitPay permits its its vendors to get payments in Gemini Dollars (GUSD) and Circle USD Coin (USDC).
Established in 2011, Atlanta, Georgia-based BitPay offers payment services to over 20,000 businesses globally. The payment processor supports Bitcoin Cash (BCH) and Bitcoin (BTC).
Regulated crypto exchanges Gemini and Circle are the issuers of Ethereum (ETH) blockchain-based stablecoins GUSD and USDC, respectively. The stable coins are pegged to the value of the US dollar on a 1:1 ratio, which supposedly reduces the risk of volatility.
In its blog post, BitPay states that the stablecoins allow merchants to receive payments in any part of the globe even if they do not hold any bank accounts, as the cryptos exist on practically borderless blockchains. BitPay has stated that it will settle GUSD and USDC within 24 hours after a vendor’s account reaches a balance of 20 GUST or 20 USDC.
Last month, Sonny Singh, COO of BitPay stated that cryptocurrency markets are presently on the verge of a new phase of progress, which demands a certain “defining moment,” or a “catalyst.” Singh stated that cryptos other than BItcoins “will never come back” to their earlier levels, while anticipating that BTC “will recover next year.”
Furthermore, yesterday, Crypto exchange OKEx informed the addition of four stablecoins namely, USD Coin (USDC), TrueUSD (TUSD), Gemini Dollar (GUSD) and Paxos Standard Token (PAX). According to the schedule, deposits for stablecoins were made available from 05:00 p.m. Hong Kong Time (HKG). Withdrawal facility will be made available starting October16.
Additionally, yesterday, Tether saw a considerable fall in price. The stable currency was trading lower than its historical trading range. Even though reasons for the USDT price decline are not confirmed, there has been information of a supposed loss of market faith that led to a sell-off.
Yesterday, a Bloomberg editorial pointed out that speculators are “losing faith” due to the continuous lack of straightforwardness surrounding Tether’s claims of being backed 1:1 by the USD.
At the time of writing this article, Tether has rebounded to $0.9820, up 0.5% from prior close.