Payu, a fintech that focuses on providing payment technology to online merchants, has announced a partnership with Celo, a blockchain payments outfit, to bring stablecoin payments to thousands of its merchants across the world.
Payu would be buying the utility and governance tokens of Celo and partner with First DAG and Alliance for Prosperity so that it can bring the stablecoin cUSD to its merchants and users as well.
Mario Shiliashki, CEO, PayU Global Payments Organisation, said: “This move aligns with our vision of a world without financial borders where everyone can prosper. We strive to equip merchants and their customers with the latest payments solutions and this drive has led us to invest in Celo and purchase tokens, in addition to integrating the stablecoin offering for our clients and partners.”
This is further proof that stablecoins are likely to be the best bet for the crypto industry as far as mainstream adoption is concerned. For a long, it was believed that bitcoin was the answer for that but with the value of BTC undergoing a lot of volatility, the mainstream adoption has been pretty slow as users have been reluctant to take the risk. This has helped the stablecoins to rise up as an alternative for mainstream adoption and for now, that seems to be working well as the circulation of stablecoins has multiplied severalfold over the last few months.
Payu has over 450,000 merchant customers covering 50 countries around the world and this could be a significant boost for the stablecoin industry. But the major drawback that is seen now is the fact that there are so many stablecoins in use with many on the horizon as well and this could lead to a lot of split and confusion as well. There are more than 5 different stablecoins that are pegged to the USD and some of them are in different blockchains as well making their use across networks doubly difficult. This could ultimately lead to a situation where stablecoins may need to be changed across networks which would lead to delays and charges and make them as bad as fiat currencies in that aspect. The crypto industry needs to ensure that this situation is avoided in the future.
“This ecosystem built between First DAG, PayU, and Celo is the perfect example of how digital assets can deliver in practice on its promise to democratize access to money anywhere in the world,” said Chuck Kimble, head of the Celo Alliance for Prosperity.