Uber Technologies Inc. is actively investigating the use of stablecoins as a means to lower the costs associated with international money transfers, CEO Dara Khosrowshahi revealed at the Bloomberg Tech conference in San Francisco. The company is currently in the exploratory or “study phase” of integrating these digital assets into its global financial operations.
Stablecoins, cryptocurrencies pegged to stable assets like the U.S. dollar, offer a promising alternative to traditional banking systems by enabling faster, cheaper, and more efficient cross-border payments. Unlike conventional wire transfers that can take several days and incur fees around $30 per transaction due to multiple intermediaries, stablecoins can settle payments almost instantly with fees often less than a dollar.
Khosrowshahi highlighted stablecoins as one of the more practical applications of cryptocurrency beyond serving as a store of value, emphasizing their potential to significantly reduce Uber’s international transaction costs. This is particularly beneficial for a global company like Uber that moves money across many countries, some of which face challenges such as limited banking infrastructure or foreign exchange restrictions.
While Uber has not yet committed to a specific stablecoin or blockchain platform, the CEO expressed strong interest in further exploring this technology to optimize the company’s payment processes. This initiative aligns with a broader corporate trend where major multinational firms are considering digital currencies to streamline financial operations and cut expenses.
The move also comes amid ongoing regulatory discussions in the U.S. Congress regarding stablecoin oversight, with proposed legislation aiming to establish clearer rules for these dollar-backed digital currencies.
In summary, Uber’s consideration of stablecoins reflects a strategic effort to harness emerging financial technology to enhance efficiency and reduce costs in its global payment ecosystem.