Uber Eyes Stablecoins to Cut Costs and Drive Crypto Payment Revival

At the Bloomberg Technology conference in San Francisco on June 5, Uber CEO Dara Khosrowshahi emphasized that stablecoins offer meaningful utility for global operations, positioning them as one of the more practical and functional applications of cryptocurrency beyond just serving as a store of value.

Uber's interest in stablecoins aligns with a broader trend among multinational corporations seeking efficient cross-border payment solutions. Stablecoins, which are digital currencies pegged to traditional fiat currencies like the U.S. dollar, offer faster transaction times and lower fees compared to conventional banking systems.

Beyond cost-efficiency, stablecoins also offer programmability and interoperability with decentralized financial infrastructure, which could position Uber to innovate in areas like real-time driver payouts and microtransactions. By leveraging stablecoins such as USDC or USDT, Uber could bypass traditional banking delays, particularly in regions with underdeveloped financial systems or volatile local currencies. This capability aligns with the company’s long-term ambitions to simplify global remittances and streamline vendor payments.

The move also comes amid growing competition in the mobility and fintech sectors. Rival platforms such as Grab in Southeast Asia and Bolt in Europe have begun experimenting with blockchain-based loyalty programs and payment integrations. By considering stablecoins, Uber not only positions itself as a forward-thinking player in fintech adoption but also signals to regulators and investors that it is preparing for a future where digital assets play a mainstream role in commerce.

Still, regulatory uncertainty remains a potential hurdle. While the U.S. and European Union have begun laying the groundwork for stablecoin oversight, the global landscape remains fragmented. For Uber to adopt stablecoins at scale, it would likely need to ensure compliance with diverse financial laws across dozens of jurisdictions. This will require close coordination with regulators, payment partners, and blockchain infrastructure providers to avoid the legal and reputational risks that previously derailed projects like Diem.

This isn't Uber's first foray into the crypto space. In 2019, the company joined the Diem Association (formerly Libra), supporting Meta's initiative to develop a global digital currency. However, that project was eventually shelved amid regulatory challenges.

Despite previous announcements, Uber has yet to implement cryptocurrency payments. In February 2021, Khosrowshahi mentioned the possibility of accepting Bitcoin for rides but emphasized that the company would not invest in cryptocurrencies as part of its treasury strategy.

A recent survey by analytics firm Artemis revealed that stablecoin payment volumes have reached an annualized $72.3 billion, with Tether's USDT accounting for 90% of transactions. The Tron blockchain emerged as the preferred settlement network, hosting around 60% of the volume.

Regulatory bodies are also recognizing the potential of stablecoins. Federal Reserve Governor Christopher Waller stated that stablecoins could strengthen the U.S. dollar's status as the world's reserve currency, provided there is a robust regulatory framework in place.

As Uber evaluates the integration of stablecoins, the company must consider various factors, including regulatory compliance, technological infrastructure, and user adoption. While no specific timeline has been provided, the move signals Uber's intent to stay at the forefront of payment innovation in the rapidly evolving digital economy.

As the adoption of digital currencies continues to rise, Uber's potential embrace of stablecoins could pave the way for broader acceptance of crypto payments in the mainstream economy.