A ban on the use of credit card to book the Uber ride through its app in Argentina placed the firm’s growth in danger. However, Bitcoin has salvaged the situation for Uber drivers in the country.
The Ban On Credit Card Use For Uber In Argentina
The Uber transport service has faced turbulent times in getting established in Argentina. Its major challenge as reported is the ban placed on using credit cards in booking its services in the country since 2016. Other difficult experience includes the Argentina government being unwelcoming, and protest from the local taxi drivers in the country.
The original plan for the Uber app service in Argentina was to ban it. However, a compromise was reached to put a stop to using credit cards on the app. The reasons expressed as the cause of the ban are; passengers health and safety is endangered, and tax collection.
This made Uber service redundant in the country, except if it service would be booked using fiat currencies, which is unsuitable for its proper operation. However, Uber surmounted this challenge with the help of cryptocurrencies.
How Cryptocurrency Salvaged Uber Service In Argentina
The ban on credit cards on the Uber app has made Uber seek an alternative, Bitcoin through Xapo’s debit card. Using the option devised by Uber gives anyone that uses the Xapo card a $30 discount, a tempting boost for Uber users.
Diego Gutierrez Zaldivar, the President of Bitcoin Latam and CEO of RSK Labs, stated that Uber users are highly knowledgeable about technology, which includes how Bitcoin operates and its usage. He further noted that those who are skeptical about using virtual currencies are illiterates.
Franco Amati, Co-organizer of the Latin American Bitcoin Conference (laBITconf) in a statement said that the ban of credit cards on Uber app did not stop people from using the service. He stated that he has friends that requested Bitcoin debit cards to use Uber transport service. Notably, most of them start to use virtual cards before the arrival of physical cards.
Anthony Pompliano, the Founder & Partner at Morgan Creek Digital and former Project Manager of Facebook, made a post on the recent victory of Uber through cryptocurrency on Twitter. Anthony stated that Argentina banned the use of cards for paying for a ride from Uber, while Uber responded by allowing users to pay using Bitcoin. Pompliano finally noted that no government could stop or kill Bitcoin.