During its 4th quarter earnings call conference, General Motors CEO Mary Barra revealed the company’s plan. GM is planning to include crypto payment in its future mode of payment.
During the question-and-answer segment of the GM call conference, an analyst from Morgan Stanley Adam Jonas asked the important question. Jonas asked whether GM intends to follow TESLA’s footsteps who reportedly accommodate Bitcoin as a form of payment. In response to the question, Mary Barra disclosed the company’s plan to include crypto payment for its future mode of payment.
Barra however, made it clear that unlike Tesla GM has no plans to invest in Bitcoin, says Nicholas Otieno of blockchain. The company apparently plans to include cryptocurrency in response to the customers demand for crypto payment methods. Not because GM intends to invest in cryptocurrency.
Although, the company is closely monitoring and is sensitive on how to position itself in the growing cryptocurrency trend. What is definite for now is its plan to include cryptocurrency mode of payment. While the discussion is ongoing, GM has revealed that it has been gathering customer feedback with regards to crypto payment.
Without the knowledge of many, GM was among the first automakers to invest heavily in the blockchain space. The company started using blockchain for personal security data and its driverless vehicles. In 2019, GM partnered with Spring Labs which is the blockchain specialists.
Cryptocurrency is gaining more acceptance
When this plan starts to roll out, GM will be the next automakers to accept crypto in its mode of payment. Last month, the giant automaker bought $1.5 billion worth of bitcoin. Few weeks after, Tesla announces acceptance of bitcoin as payment for buying electric vehicles. Elon Musk reportedly shows support on Bitcoin alongside altcoin Doge. Musk was a bit controversial as his announcement has reportedly influenced the rise of Bitcoin value. Some analysts have observed the parallel growth of Tesla stock price with the rise of Bitcoin value.
Although Tesla has not given any details as to the methods of the crypto payments, Musk provides some clue of how it goes. Musk said that Bitcoin payment will not be converted into traditional fiat currency. Instead, the company will use an internal and open-source software to do the payment processes.
The ARK Investment CEO Cathie Wood recently said that she expects tech companies to include Bitcoin in its investment portfolio. Wood is a prominent investor of Tesla. She disclosed that a number of big companies have been asking her advice whether it is high time to allocate huge cash in Bitcoin or other cryptocurrencies.
Corporations outside of the US are now slowly joining the bandwagon in investing cryptocurrencies. Meitu, a Hong-Kong listed company, bought $22 million worth of Bitcoin and $18 million worth of Ether to diversify its assets and cash reserve. Aker Norwegian, an oil service company, also recently bought $58 million worth of Bitcoin and related cryptocurrencies.
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