The Argentine government banned Uber from using bank cards to pay, and Uber turned to Bitcoin

Author: Wang Lulu Beijing time, July 8 morning news, after banks in Buenos Aires, the capital of Argentina, banned Uber from charging debit cards, the company established a partnership with Bitcoin startup Xapo to jointly provide local consumers with a new payment method.

Uber Argentina last week began offering promo codes to Xapo users in the country, Anni Rautio, head of Xapo’s debit card project, said in an interview.

“This is not a formal partnership, but a way to respond to changes in the situation as quickly as possible,” Rautio said. “We hope to expand our reach in Argentina.”

The stakes are high for Xapo and bitcoin loyalists, as the digital currency is not widely used to buy goods and services. But bitcoin is popular with investors in countries such as Argentina, where the official currency may be eroded by inflation and consumers are looking for safe financial instruments outside the control of central banks. Investors recently worried that Brexit would greatly increase bitcoin's appeal.

For Uber, this may be just another setback in the company's long quest to expand its reach in Argentina. Local authorities have reportedly raided the company's offices and charged it with tax evasion. Uber's move into Buenos Aires a few months ago was also met with protests from local taxi drivers and road closures - though Uber says the city is signing up drivers and passengers faster than any other Latin American city.

"We have a local partnership with Xapo, which has developed a prepaid card that accepts bitcoin as a payment method," said Matt Kallman, an Uber spokesman. "We do not currently accept bitcoin."

But Gil Luria, an analyst at U.S. investment bank Wedbush Securities, said Uber's partnership with Xapo may eventually move beyond Argentina and expand to countries where it is difficult to get government support.

“Xapo has successfully integrated Bitcoin into several Latin American apps, including social networks. The integration with Uber opens up new opportunities,” he said. “Uber Argentina is also integrating Bitcoin because they have difficulty connecting traditional bank cards. If Uber receives widespread demand in this regard, Xapo’s Bitcoin debit card will become a payment method for Uber in other markets, especially in Latin America.”