US-based payment processor Stripe, which helps more than 100,000 businesses do financial transactions online, has announced plans to scrap support for Bitcoin payments from April.
Customers pay a fee to Stripe each time it processes a cryptocurrency payment.
Product manager Tom Karlo announced in the latest blog post that cryptocurrency has become way less useful as a method of payment. “Bitcoin has evolved to become better-suited to being an asset than being a means of exchange,” stated Stripe, referring to a large increases in transaction confirmation times, transaction failure rates — all of which have made bitcoin less functional for payments.
“Empirically, there are fewer and fewer use cases for which accepting or paying with bitcoin makes sense,” it added.
While Stripe would no longer accept bitcoin payments, the firm remains “optimistic about cryptocurrencies overall.”
Bitcoin is a digital currency that has no central bank or regulatory authority backing it up. The digital coins are stored in a digital wallet or on the cloud and can be used in transactions.