Cutting down the price of cross-border transfers by even 3%, which is what Stripe charges, would be a bonus to global gross domestic product.
Having SpaceX headed by Elon Musk, a fan of the meme coin DOGE, as expected, the firm uses stablecoins.
Over Twitter and rebranding the social media platform to X, the CEO has permitted X users to transfer Bitcoin as well as other cryptocurrencies as ‘tips’ to other users.
On December 20, in an all-in podcast, Chamath Palihapitiya, founder at Social Capital said that the Space Exploration Technologies Corp., also known as SpaceX uses stablecoins to dodge foreign exchange risks.
Foreign exchange risk is the term given to the risk of losses that could appear from extreme volatility in a currency. Let’s say, if a company from the United States has consumers in Brazil that pay in Real (BRL), the firm could stand to lose money when changing to U.S. dollars.
The firm doesn’t want to take foreign risks
The founder, Palihapitiya mentioned that SpaceX takes payments from all Starlink consumers in long-tail countries and alters them to stablecoins. Elon Musk’s SpaceX takes possession of Starlink, and it offers satellite internet services.
Palihapitiya also revealed that the firm has re-altered the stablecoins to dollars in the United States. “When SpaceX receives the payments in all these long-tail countries, they don’t wish to inevitably take the foreign exchange risk. They do not wish to handle sending wires.”
The founder further mentioned that stablecoins should become the main method of cross-border transactions in the United States, which would permit us to withdraw all of this decrepit infrastructure that the banks use to sort of slump and tax a process that should never have been taxed.
The providers of stablecoin such as Tether and Circle are growing as worthy challengers that will give banks a run for their money when the matter is associated with money storage and transfer services.
But it is not only the banks the stablecoin offerers are rivaling with. The offers of stablecoin are also handling traditional payment giants such as MasterCard and American Express, as revealed by Palihapitiya.
Box’s CEO agrees with Palihapitiya
He also mentioned that cutting down the price of cross-border transfers by even 3%, which is what Stripe charges, would be a bonus to global gross domestic product. The chief executive officer of enterprise cloud company Box, Aaron Levie accepted the point of view of Palihapitiya and said that stablecoins mending expensive traditional transaction medium makes total sense.
Having SpaceX headed by Elon Musk, a fan of the meme coin DOGE, as expected, the firm uses stablecoins. Tesla, another firm headed by Elon Musk put its money heavily into Bitcoin, an investment that has really paid off with the investment value going over the $1 billion mark in November as the worth of Bitcoin (BTC) initiated to go up after the election victory of Donald Trump.
Over Twitter and rebranding the social media platform to X, the CEO has permitted X users to transfer Bitcoin as well as other cryptocurrencies as ‘tips’ to other users. There is also an emerging speculation regarding the role of crypto in the forthcoming payments feature of X.
