Afterpay pitches for stablecoins and crypto in submission to Australian Senate

Karthik Subramanian

Afterpay, the buy-now-pay-later giant from Australia that was recently acquired by Square, has given submission to the Australian Senate for ‘making Australia a technology and financial center’ in which it has proposed the use of stablecoins and crypto to cut down merchant fees.

This is the first indication from the company that shows its inclination towards the crypto ecosystem and it has said that cryptos could be a way to reduce the use and dependence on cards which could in turn help to cut down the network costs as the fees would then be shared between the payer and the receiver and the merchants would no longer need to shoulder the burden.

“Afterpay does not currently offer crypto-related products but we are actively considering how innovative features could be a part of the financial management ecosystem we are building,” it said. “Our customers expect us to evolve with their needs and aspirations, whether or not they meet traditional definitions of financial products and services.”

This assumes further significance as this is the first time that the company has directly challenged the business model of the card companies. The BNPL product is already seen as a competition to the traditional card business as they also allow purchase amounts to be split into 3 or 4  and no fees are charged for the same and the companies make their revenue by depending on the late fees and also on defaulters as well. Afterpay also goes one step further in suggesting that the government and the RBA could look into a framework for an AUD-backed stablecoin which the RBA could push to its population and this would help in the adoption of crypto in the mainstream as well.

As a company, it does make sense for Afterpay to pitch for the use of crypto as it has been acquired by Square which processes crypto payments and so they would be viewing the increased use of crypto as a chance to build and diversify their business as well. It is now up to the regulators to take a call on the increased adoption of crypto and how they would be able to bring in regulations to control the flow of such cryptos within the financial ecosystem. Regulators around the world have been busy with this task over the last few months as they have realized that crypto is here to stay and it would be easier to regulate and control them rather than give them up altogether. installments


Read this next

Digital Assets

TRON approves Wintermute to mint, burn USDD stablecoin

TRON Reserve DAO has welcomed crypto market-making giant Wintermute as the ninth member and whitelisted institution to mint Tron network’s stablecoin, Decentralized USD (USDD).

Metaverse Gaming NFT

Nas Academy and Invisible College introduce innovative model for Web3 education

Singapore-based online learning platform, Nas Academy is joining forces with Invisible College to teach people everything they need to know about the Web3.

Digital Assets

Top exec at BitMEX pled guilty US Bank Act violations, pays $150K fine

BitMEX’s head of business development, Gregory Dwyer pled guilty to violating the US Bank Secrecy Act (BSA) and allowing customers to use the platform to circumvent the federal anti-money laundering rules.

Retail FX

CySEC slaps €150,000 fine on FXBFI, operator of 101investing brand

The Cyprus Securities and Exchange Commission (CySEC) today announced that it has reached a settlement with FXBFI Broker Financial Invest Ltd, trading as 101investing, ordering the firm to pay €150,000 for violating the Investment Services and Activities and Regulated Markets Law.

Retail FX

X Open Hub expands multi-asset offering with new cryptocurrencies and indices

X Open Hub, a multi-asset liquidity provider, announced today that it has extended its offering with inclusion of 30 new cryptocurrencies and two emerging market indices.

Retail FX

Interactive Brokers now offers 24/7 access to crypto trading

Interactive Brokers Group, Inc. (NASDAQ: IBKR) has widened access to cryptocurrency trading for its clients. Specifically, the discount broker extended trading hours for its cryptocurrency products to be traded 24/7, including on the weekends.

Inside View

Natural Language Generation for Multi-Language Social Media Strategies 

Natural Language Generation (NLG) is a crucial growth area in the digital landscape, with the unique potential to be used across multiple industries.

Market News, Technology

The B2Core Android App is Now Available For Download

The first version of the B2Core Android app is available for download, and it has many beneficial features for users.

Digital Assets

XBO taps custodian Fireblocks ahead of crypto exchange’s launch has integrated with digital asset and crypto technology platform Fireblocks ahead of the crypto exchange’s upcoming launch.