Argentinian government never really welcome Uber to function legally and prominent. Uber officially operates in Argentina from April 2016, since then they have been a target from the government side. Though Uber got a permit to share their rides in Argentinian streets, The government did not provide them the freedom. Thus, order to block the use of credit card have started from 2016 on words.
A smartphone app user, Uber has been used in more than 50 countries. It is a peer-to-peer network mostly used for transportation. The government of Australia has violated this San Francisco based startup.
The Cause of the conflict
This conflict started when Uber enters Argentina without the authorization from the Government of the Ministry of Transportation; instead, they incorporated a Local limited liability company.
Apart from the government, the local transportation owners refuse to accept Uber. Both the government and the locals join hands in opposing Uber rides. Uber was thus taken to court for investigation, with this the local credit cards companies including telecommunication are requested to block Uber. Last year, Uber went through an investigation over the way it recruits drivers.
Uber does not stop here. In spite of all the condemnation and aggressive attacks from the insider, Uber still usually operate.
Bitcoin as an alternative
For Uber, finding a solution that will provide an alternative to a credit card is a must. Xapo a Hong Kong-based Bitcoin company that offers both cold storage and bitcoin wallet reach out for Uber. Wences Casares and Federico Murrone created Xapo in the year 2012.
With the help of Xapo, Uber can function even without a credit card with the use of Xapo’s debit card. This switch to Bitcoin does aid in the growth and function of Uber users. It is also estimated that Uber gives a 30% discount. This cryptocurrency saves the Uber from falling over.
Bitcoin, being a decentralized, censorship resistance, and a peer-peer network, does not need the government approval, and the government can not stop from functioning either. Thus, with Bitcoin Uber cannot be obstructed by the government as they have no authority over the cryptocurrency/ bitcoin-based credit card.
This new technology is embraced well enough by the citizen who uses Uber with bitcoin. The President of Bitcoin Latam and Franco Amati, from the Latin American Bitcoin Conference, also mentioned how people have adapted to the digital world. The unique solution Xapo had given gave a numerous flash towards the use of Bitcoin by the citizen.