July 1, 2014 / 6:42 PM / 4 years ago

Fitch: Corporate Acceptance of Bitcoin on the Rise

(The following statement was released by the rating agency) NEW YORK, July 01 (Fitch) Several recent events point to greater corporate acceptance of the virtual currency Bitcoin as a payment mechanism, according to Fitch Ratings. DISH Network on May 29 said it would accept Bitcoin as a form of customer payment beginning in the third quarter of this year. Expedia said in June that it would begin accepting Bitcoin as payment for hotel reservations, while online retailer Newegg just announced that it would accept Bitcoin as well. In mid-June, Apple made virtual currency app Coin Pocket available for download in its App Store. Coin Pocket is a Bitcoin wallet app that can be used to send and receive bitcoins. As was widely reported, Apple recently added a rule to its App Store guidelines stating "apps may facilitate transmission of approved virtual currencies provided that they do so in compliance with all state and federal laws for the territories in which the app functions." Companies like DISH, Expedia, and Newegg generate meaningful revenue and an increase in payment for products and services via Bitcoin could boost the payment system. However, as we've stated previously, Bitcoin is still small relative to both major payment processors and global currencies despite increases in its acceptance as a payment system. Bitcoin's price and transaction volume have climbed since mid-May, reversing downward trends earlier in the year. The price of Bitcoin rose from $489 on May 21 to $639 on June 30. As a result of this price increase, the average daily transaction volume rose from $47 million per day in May to $61 million per day in June, despite a decline in the average number of daily transactions. For additional information on this topic, please see our report titled, "Sizing Up Bitcoin - Volume Rises with Price in June," available at www.thewhyforum.com. Contact: Robert Grossman Managing Director Macro Credit Research +1-212-908-0535 Kellie Geressy-Nilsen Senior Director FitchWire +1 212 908-9123 Fitch Ratings, Inc. 33 Whitehall Street New York, NY 10004 Media Relations: Brian Bertsch, New York, Tel: +1 212-908-0549, Email: brian.bertsch@fitchratings.com. Additional information is available on www.fitchratings.com. The above article originally appeared as a post on the Fitch Wire credit market commentary page. The original article, which may include hyperlinks to companies and current ratings, can be accessed at www.fitchratings.com. All opinions expressed are those of Fitch Ratings. ALL FITCH CREDIT RATINGS ARE SUBJECT TO CERTAIN LIMITATIONS AND DISCLAIMERS. PLEASE READ THESE LIMITATIONS AND DISCLAIMERS BY FOLLOWING THIS LINK: here. IN ADDITION, RATING DEFINITIONS AND THE TERMS OF USE OF SUCH RATINGS ARE AVAILABLE ON THE AGENCY'S PUBLIC WEBSITE 'WWW.FITCHRATINGS.COM'. PUBLISHED RATINGS, CRITERIA AND METHODOLOGIES ARE AVAILABLE FROM THIS SITE AT ALL TIMES. FITCH'S CODE OF CONDUCT, CONFIDENTIALITY, CONFLICTS OF INTEREST, AFFILIATE FIREWALL, COMPLIANCE AND OTHER RELEVANT POLICIES AND PROCEDURES ARE ALSO AVAILABLE FROM THE 'CODE OF CONDUCT' SECTION OF THIS SITE. FITCH MAY HAVE PROVIDED ANOTHER PERMISSIBLE SERVICE TO THE RATED ENTITY OR ITS RELATED THIRD PARTIES. DETAILS OF THIS SERVICE FOR RATINGS FOR WHICH THE LEAD ANALYST IS BASED IN AN EU-REGISTERED ENTITY CAN BE FOUND ON THE ENTITY SUMMARY PAGE FOR THIS ISSUER ON THE FITCH WEBSITE.

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