Stripe will be putting an end to its deployment of Bitcoin support on its platform by April.
The company will be seeking to do so because they see several concerns within in the Bitcoin network.
An employee from Stripe noted several points in a recently published post, entitled “Ending Bitcoin Support.”
The post mentions their support and excitement about the possibilities of cryptocurrencies and notes that they started providing Bitcoin support all the way back in the early years of 2014.
They hoped 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.”
They saw that Bitcoin gradually grew into becoming more of an asset as opposed to a means of exchange. They highlight that block size limits were reached, and this led to the cryptocurrency being less useful for payments. Situations such as increasing confirmation times “led to an increase in the failure rate of transactions denominated in fiat currencies. (By the time the transaction is confirmed, fluctuations in Bitcoin price mean that it’s for the “wrong” amount). These, and concerns about fees have the made it seem more of an asset class, at the current moment.
The company has seen a decline in usage from their customers to want to support Bitcoin payments on their various shops and places of business.
They will be working with their current customers and will be winding it down by April of this year.
Potential Support for other cryptocurrencies
This doesn’t mean the company is writing off cryptocurrencies in general; they might very well add support for other cryptocurrencies shortly.
Karlo noted that they might be providing support for cryptocurrencies like Stellar Lumens in the future.
“We may add support for Stellar (to which we provided seed funding) if substantive use continues to grow.”
Stripe is the best way to accept payments online and in mobile apps. We handle billions of dollars every year for forward-thinking businesses around the world.
Stripe seeks to build the universal payments structure of the Internet.
Stripe currently powers businesses in 25 countries. We work from around the world in nine global offices, and many more Stripes work remotely from anywhere.
Stripe’s investors include Sequoia Capital, Andreessen Horowitz, and PayPal co-founders Peter Thiel, Max Levchin, and Elon Musk.