Stripe Teams Up With Twitter in Renewed Crypto Payments Push
Comment of the Day

April 22 2022

Commentary by Eoin Treacy

Stripe Teams Up With Twitter in Renewed Crypto Payments Push

This article from Bloomberg may be of interest to subscribers. Here is a section:

The move is the latest manifestation of Stripe’s renewed interest in crypto after rivals such as Block Inc., PayPal Holdings Inc. and made inroads in the industry. Stripe suspended support for Bitcoin payments in 2018, but began recruiting crypto talent last year and in March said it was helping digital-asset exchanges FTX and with online payments and customer verification. 

Creators on Twitter will be able to receive payments initially in the stablecoin USD Coin. The payouts across the Stripe Connect platform will be made using Polygon, a blockchain network designed to make Ethereum faster and easier to use. Stripe said it chose Polygon because of its speed and low transaction fees.

Eoin Treacy's view

Distributed ledgers and trustless networks continue to gain traction in the financial services sector. The desire to track ownership and the origin of funds has probably increased with the sanctions levied on Russia which should be positive for blockchain-based payments systems. However, that doesn’t tend to have much influence on the trajectory of crypto assets.

Bitcoin is a liquidity play. It originated as a rebellion against the debasement of fiat currency and does best when money supply is surging. The prospect of higher rates and shrinking central bank balance sheets is weighing on the price. It dropped back below the psychological $40,000 today and will need to bounce soon if support building is to continue to be given the benefit of the doubt.
The Fintech sector has sold off aggressively over the last year in line with other innovation plays with no profits and a long timeline to achieve any.

PayPal expects free cashflow to growth over the coming years, but the share continues to shar commonality with the wider sector.

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