November 16, 2024

Uber Shows Interest In Crypto Payments, Dismisses Adding BTC To Treasury

Uber has disclosed its unwillingness to buy bitcoin with corporate cash— a strategy that is gradually gaining adoption among large companies with piles of cash lying around. However, Uber has shown interest in participating in the cryptocurrency sector, but only in the context of receiving crypto payments for its services.

Uber’s Unwillingness To Join Companies Buying Crypto

According to the CEO of Uber, Dara Khosrowshahi, Uber has no plans of adding bitcoin or other cryptocurrencies to its treasury because its focus is on building the business itself and not on investments.

Speaking in an interview on CNBC’s Squawk Box, Khosrowshahi said:

“It’s a conversation that’s happened that has been quickly dismissed. We’re going to keep our cash safe. We’re not in the speculation business. “The upside in our company is in the business that we’ve built, not the investments that we invest in.”

Uber had last reported that its cash equivalents were about $5.65 billion along with $1.18 billion in short-term investments.

Khosrowshahi’s comments come in light of recent events by companies such as Tesla who added $1.5 billion worth of Bitcoin to its balance sheet. The company also plans to let customers use bitcoin to pay for cars.

However, Tesla is not the only company adding crypto to its treasury. Regulated crypto services firm BCB Group announced its launching of the BCB Treasury, which is aimed at crypto-curious chief financial officers. The treasury will help them trade crypto, report and manage their companies treasury with accounting tailored to the CFO’s needs.

Norway’s Aker ASA has also set up a new company dedicated to investing in Bitcoin projects and companies. Chinese company Meitu Inc also made news last week for purchasing $22 million in Ether and $17.9 million of Bitcoin in a bid to diversify its holdings away from cash.

Uber Following MasterCard And PayPal

Khosrowshahi said the ride-hailing company would consider it as crypto payments would be beneficial for both riders and consumers.

MasterCard had previously announced its decision to support digital currency transactions by allowing merchants receive payments in selected cryptocurrencies this year. The financial service provider stated that cryptocurrencies had become important in the payments world.

In the same vein, PayPal now offers cryptocurrency service on its platform by allowing customers to buy, sell and hold cryptocurrencies on its platform. It also signaled its plans to significantly increase cryptocurrency’s utility by making it available as a funding source for purchases at its 26 million merchants worldwide. But, PayPal Chief Financial Officer John Rainey reiterated his company has no plans to invest in Bitcoin.

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