Fintech firm Adyen dismisses Bitcoin as a payment method
Cryptocurrency is too volatile and of little interest to online payment merchants, the firm's CEO suggests
The CEO of European fintech giant Adyen has expressed concerns around using Bitcoin as a mainstream form of payment.
The cryptocurrency's volatility makes it less viable for transactions, the company's founder and CEO, Pieter van der Does, told CNBC.
Ayden, a Dutch payment platform founded in 2006, processes payments on behalf of Netflix, Facebook, and other leading brands. It's one of a number of companies that enjoyed significant growth due to the pandemic with more customers using its online payments and e-commerce services. But, the firm's CEO has said it has "no interest" in adding crypto payment methods to its roster of services.
"Bitcoin is more of an investment asset than a payment method," Van der Does said, according to CNBC. "We are interested in payment methods which are being used. I am wondering if the huge movement in the value of Bitcoin is helping it as a payment method."
In that regard, the value of Bitcoin, and other cryptocurrencies, has fluctuated wildly throughout its existence. Just over the last few years, Bitcoin value has dropped below £10,000 but also, more recently, shot up to new heights of $36,352.20. The recent news that Tesla will use its corporate cash to buy Bitcoin saw its value soar past $40,000.
The electric car firm announced a $1.5 billion investment in Bitcoin on Tuesday alongside plans to start accepting payments in the digital currency. Similarly, Mastercard has also suggested it will offer some cryptocurrencies on its network in the future, although it's unclear if Bitcoin will be included.
Adyen's stance to not follow suit adds to a growing list of companies and organisations that are suspicious of cryptocurrencies. The likes of in-coming Intel boss Pat Gelsinger and the Financial Conduct Authority have expressed concerns and warnings around the use of digital tokens. Van der Does has also suggested that Adyen's clientele have shown no interest in it either.
"It might not actually be helping cryptocurrencies if they are more like investment assets than a currency," he told CNBC. "That makes it less interesting for a merchant - to have potential (as a means of payment), you need a stable currency."