On May 23, the world’s largest telecommunications company began accepting Bitcoin (BTC) for bill payments, making it the first major US mobile carrier to accept cryptocurrency. Following this news, Bitcoin’s price experienced another leg up from $7,600 to over $8,000 the next day.
Everybody was ecstatic over this news, touting that Bitcoin is finally seeing some real adoption and being used as a legitimate currency.
However, what many people fail to realize, especially those unfamiliar with the industry, is that AT&T doesn’t actually accept or receive payments in Bitcoin. They receive US dollars, as the Bitcoin being paid is through the popular Bitpay payments processor, which converts the Bitcoin to fiat currency upon receiving it.
Granted, this is a step in the right direction, but it’s still too small a step for some. Omar Bham, a popular cryptocurrency YouTuber and voice of opinion in the space, suggested looking to the stablecoin DAI as a solution:
Unpopular truth: AT&T isn’t accepting Bitcoin. Bitpay is. They sell the BTC for dollars, and that’s what AT&T gets.
We need businesses that want REAL crypto. I understand volatility concerns, but that’s why DAI exists 🙂
— Omar Bham (Crypt0) (@crypt0snews) May 23, 2019
Crypto Needs Real Adoption
While AT&T acceptance of Bitcoin payments through Bitpay is a step in the right direction and still bullish for Bitcoin, it’s not exactly how Bitcoin – or any crypto, for that matter – is intended to be used.
The whole idea of crypto is to cut out the middlemen, and that is exactly what Bitpay is: a third-party middleman that charges a fee and adds another step to the payment process.
However, companies like AT&T will not accept Bitcoin for as long as it is volatile with a high level of risk and uncertainty. Therefore, companies like Bitpay are necessary for mainstream adoption of crypto payments.
However, Bham brought up a good point in his tweet above, stating that companies could accept DAI, the decentralized stablecoin by MakerDAO (MKR).
What makes the DAI stablecoin preferred by hardcore crypto enthusiasts is that it is pegged 1:1 to the US dollar but is backed by crypto, not fiat currency. Therefore, businesses could safely accept DAI without worrying about volatility.
Perhaps the Ethereum-based MakerDAO’s DAI stablecoin is the answer to true crypto adoption, as it is a fully decentralized stablecoin, backed by crypto and pegged 1:1 to the dollar.
Do you think MakerDAO’s DAI stablecoin will be the solution for real widespread adoption of crypto? Let us know what you think in the comment section below.