General Motors Considers Using Bitcoin As Payment Option

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Automobile manufacturer General Motors has joined a growing list of companies considering using Bitcoin as a payment option for its services.

General Motors Still Evaluating Bitcoin

Last month, during GM’s Q4 2020 earnings call, Chief Executive Officer Mary Barra suggested that the company would consider payments from buyers in Bitcoin.

Although Barra said General Motors has no plans of investing in Bitcoin, she said that the company would ‘monitor’ and ‘evaluate’ the cryptocurrency.

“If there’s strong customer demand for it in the future, there’s nothing that precludes us from doing that,” she reportedly said in an exchange with analyst Adam Jonas of Morgan Stanley.

Barra’s statement came as a result of the question asked by Jonas. According to a transcript on SeekingAlpha.com, Jonas had asked whether GM might follow other companies in holding Bitcoin to diversify its cash reserves or accept it as payment for automobile purchases.

Tesla And Other Companies Accepting Bitcoin

Tesla seems to have blazed the trail for other companies as eccentric CEO Elon Musk announced that Tesla would accept Bitcoin as payment for its electric vehicles.

Tesla became the first major vehicle manufacturing company to announce the new payment option weeks ago.

The payment option, which was disclosed alongside a $1.5 billion investment in Bitcoin, came as no surprise to many as Tesla’s CEO Elon Musk had openly supported the cryptocurrency.

There have also been reports of Tesla accepting Bitcoin as payment before now. Back in 2013, a Florida Man purchased a Tesla S at a California dealership for 91.4 Bitcoins.

According to a CNN Business report at the time. The Model S retailed at the dealership for $103,000.

However, not everyone supports the idea of using Bitcoin as a mode of payment. Ark Invest CEO, Cathie Wood recently advised crypto investors not to invest or transact in Bitcoin or any other cryptocurrency until the IRS tax rules are changed.

Other major companies that have also expressed interest in Bitcoin, include Bank of New York Mellon, MasterCard. Microsoft and AT&T already allow customers to pay using cryptocurrency.

While GM may be new to cryptocurrencies, it is certainly not new to blockchain. General Motors Financial Company, the financial services arm of General Motors, had previously entered a partnership with blockchain startup Spring Labs in 2019.

The partnership between GM and Spring Labs was focused on developing blockchain programs for companies.

Remember, all trading carries risk. Past performance is no guarantee of future results.

Jimmy has been following the development of blockchain for several years, and he is optimistic about its potential to democratize the financial system.