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Uber Will ‘Absolutely’ Accept Crypto – At Some Point

Uber is looking into enabling crypto payments and will “absolutely” allow them – at some point. However, that may not happen until transaction costs and environmental impact drop.

Uber’s CEO Dara Khosrowshahi said that the company could “definitely” accept cryptos like Bitcoin at some point in the future.

In an interview with Bloomberg tech, the CEO revealed that the ridesharing company discusses crypto payments within the app. However, that won’t happen until crypto payments become less expensive and lower their environmental impact.

We are having conversations all the time.  I think right now what we see with Bitcoin and some of the other cryptos is that they are quite valuable as a store of value. The exchange mechanism is expensive, and it’s not great for the environment.

High Fees, Carbon Footprint

Currently, Bitcoin and Ethereum, the largest cryptos, have higher transaction fees than most traditional payment systems. For Bitcoin, these fees are about $3 per transaction, while Ethereum gas fees are closer to $30.

Moreover, both blockchain networks function on a proof of work model to validate transactions. That, in turn, requires a lot of computing power and energy, contributing to their carbon footprint. This has made the networks target criticism from regulators and activists alike.

As the exchange mechanism becomes less expensive, more environmentally friendly, I think you will see us lean into crypto a little bit more.

Still, Uber’s CEO is optimistic about blockchain tech overcoming these issues.

We are absolutely watching it. So if you say ‘is Uber going to accept crypto in the future?’ – absolutely.

ETH 2, Lightning

New tech solutions like Bitcoin’s Lightning Network could solve some of these issues for users. Thanks to Lightning Network integration, Block’s Cash App already offers free Bitcoin payments.

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On the other hand, Ethereum is transitioning to the proof of stake model. This will be a part of the merge between the execution and the consensus layer, formerly known as ETH 2.

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