South Korean convenience-store chain CU to accept cryptocurrency
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Major South Korean convenience-store chain CU is preparing to accept payments in cryptocurrency.
The chain, which operates more than 13,000 outlets in the country, will use the Chai payment system to trade in Terra, a won-backed stablecoin that has garnered investment from many large Korean firms.
CU parent firm BGF Retail partnered with Chai earlier this week to allow buyers to pay by presenting a barcode from the Chai mobile app.
Terra co-founder Do Kwon told CCN Korea that low-margin businesses struggle to accept volatile cryptocurrencies such as Bitcoin. In other regions, retailers often deal with exchanges to convert cryptocurrency payments to money on the spot.
“Moving forward, Chai will continue to lessen the burden on franchisees and increase the merit of consumers through partnerships with various companies like CU convenience store with an on and offline infrastructure,” said Chai Corporation president Han Chang-joon in a statement translated by CCN.
Questions & Answers
Q.Which specific cryptocurrency will CU be accepting for payments?
Which specific cryptocurrency will CU be accepting for payments?
CU will be accepting payments in Terra. This is a won-backed stablecoin that has attracted investment from several major Korean companies, aiming to provide a less volatile option for transactions.
Q.How will customers be able to pay using cryptocurrency at CU stores?
How will customers be able to pay using cryptocurrency at CU stores?
Customers will pay by presenting a barcode from the Chai mobile app. The Chai payment system, with which CU's parent company BGF Retail partnered, facilitates these transactions directly at the point of sale.
Q.Why has CU chosen a stablecoin like Terra over more volatile options such as Bitcoin?
Why has CU chosen a stablecoin like Terra over more volatile options such as Bitcoin?
Terra co-founder Do Kwon stated that businesses with low-margin operations often struggle to accept volatile cryptocurrencies. The stablecoin offers a more predictable value, which is beneficial for such retail environments.
Q.What is the role of the Chai payment system in CU's new cryptocurrency payment scheme?
What is the role of the Chai payment system in CU's new cryptocurrency payment scheme?
Chai is the payment system CU will use to trade in Terra. CU's parent firm BGF Retail partnered with Chai, enabling buyers to pay by scanning a barcode from the Chai mobile app directly.
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