Focus: Bitcoin buys Tesla cars, what is the payment mechanism | Reuters



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[Londres, 8 de Reuters]- American electric vehicle (EV) giant Tesla announced on the 8th that it will be possible to buy Tesla cars using crypto assets (virtual currency) Bitcoin in the near future. If done, there is a chance that the use of Bitcoin payments will expand in the real world.

On February 8, the American electric vehicle (EV) giant Tesla announced its intention to allow the purchase of Tesla vehicles using crypto assets (virtual currency) Bitcoin in the near future. Taken in January 2019 at the Tesla showroom in Shanghai (2021 Reuters / Aly Song)

Although Bitcoin has become more popular in recent years, it is still mainly used as an investment product rather than a payment method.

While there are some large companies that allow Bitcoin to purchase products through third-party payment providers, Tesla has suggested that you can receive Bitcoin directly as part of its plans to incorporate cryptocurrencies into your investment portfolio …

Tesla mentioned the plan in a quarterly report submitted to regulators. He also revealed that he had bought $ 1.5 billion worth of Bitcoin. If a customer buys a Tesla car with Bitcoin, Tesla says they may or may not collect it immediately. Experts note that this suggests that Tesla may have at least some Bitcoins instead of automatically selling them.

A Tesla spokeswoman has not responded to requests for comment on the details.

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Assuming Tesla receives Bitcoin payments in the same way as other major companies, customers send Bitcoin from their “digital wallet” to a third party, who exchanges it for dollars, etc. Then it will be shipped to Tesla.

For example, AT&T and Microsoft have accepted Bitcoin through BitPay, a virtual currency payment process. A BitPay representative said that it had helped settle payments from luxury car dealers, but has no deal with Tesla at this time.

Consumers can also use a payment card that exchanges virtual currency for dollars in advance to purchase products in stores that have never officially accepted Bitcoin.

Mason Bolda, CEO of token software, supporter of digital currency and a cryptocurrency software company, said he bought Tesla’s “Model 3” in Bitcoin in 2016 through a company called Shakepay. Reveal. He loaded his Bitcoin onto a single credit card and paid Tesla in cash.

But Mr. Bolda says he’s sorry. The value of Bitcoin, which was about $ 400 at the time, has surpassed $ 44,000 as of Day 8. This means that the $ 130,000 worth of Bitcoin that you used to pay for the Model 3 is now worth more than $ 14 million. .

“I don’t recommend buying high-priced items with Bitcoin,” Bolda said. The “novelty” of buying with Bitcoin warns that if prices skyrocket, they will soon disappear.

Experts believe that Tesla can build its own payment system without using a middleman. That way, you can receive Bitcoin and sell it at any time at the discretion of management.

However, this is an unusual choice. PayPal Holdings, a major payment services company, is expected to allow the use of cryptocurrencies on its network by the middle of this year, but even PayPal plans to make payments through Paxos Trust Company. In other words, neither the seller of the product nor PayPal need to own the virtual currency.

Tesla CEO Elon Musk has shown enthusiastic support for cryptocurrencies online, with industry insiders pointing out that he has the technical know-how to build the necessary infrastructure.

If Tesla chooses this method, customers will send Bitcoin to Tesla’s own system. CoinShares Chairman Danny Masters believes that Tesla will likely need to establish a guaranteed exchange rate in the very short term.

“The price of Tesla cars is likely to continue to settle in dollars, and the company told customers: ‘Send dollars or bitcoins. If you send bitcoins, this price is 5. It will be valid for one minute.”

(Reporter from Anna Irrera)

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