Hashing it Out 14: Stablecoins as a Cashless Solution

CoinGeek has released the 14^th episode of its crypto informational series Hashing it Out. In the new episode, seasoned payments and gaming veteran Christian Solomine spoke about the B2B gambling blockchain solutions company BitBoss and the cashless solutions it provides.

Cashless Solutions as a Way to Create a Seamless Omnichannel

Solomine became a Board Advisor at the company this past March, and has seen how it has progressed. He noted that BitBoss has managed to get the solution out in front of regulators and operators in multiple states across the US. The company will soon implement its cashless solution to a land-based operator in Colorado and will provide an interesting insight into how an omnichannel approach fares. 

Omnichannel is something that the US fast-growing gambling industry has repeatedly struggled to adequately implement.

“These gaming platforms are paying to get money in, paying to get money out and the player experience is totally bifurcated. It’s really broken and it’s costly and you’re using money transmitters to move all the stuff around,” Solomine pointed out.  

Bit Boss’s solution, according to Solomine, might relieve some of the hurdles operators have been experiencing. According to him, a crypto wallet is an immediate yet simple solution to this that lets players be fully in charge of their own funds without relying on a custodian, an operator and third-party wallets.

“Once you change that dynamic and you can have that interaction in between land-based and online or even multistate, it fundamentally changes the experience. It’s frictionless, it’s fast, it’s cost-effective for the operator and it gives a great player experience,” Solomine concluded.

BitBoss’ Board Advisor continued by mentioning that the company’s payment tech is a great solution to any operator looking to appeal to younger audiences. Since the latter are usually tech-savvy, their experience will dramatically improve if they can do everything through their phones. Solomine provided an example where a casino player receives an instant $100 from a friend and immediately uses them for cashless gaming.

Custodial based solutions, on the other hand, make it much more difficult for something like that to happen,

Cryptocurrency at the Solution’s Core

The proposed cashless solution is powered by a blockchain using the so-called stablecoins – a type of crypto that has a fixed price. Solomine mentioned that stablecoins are the way to go because bookmakers will not be willing to use crypto tokens with a volatile price.

BitBoss’ solution uses US dollar-backed stablecoins, meaning that the tokens’ price is guaranteed and not held by a trust.

“We’re not taking outside cryptocurrency, Bitcoin, Ethereum, whatever it may be and bringing it into the ecosystem,” Solomine explained, “We’re allowing players to fund their accounts with Fiat, whether it’s ACH or via debit card. They fund a pooled account and then we issue back that stabletoken. So that’s a really important differentiation.”

This also places BitBoss’ stablecoin in higher regard among regulators, Solomine mentioned.

Lastly, Solomine talked about how this blockchain solution might minimize problem gambling. While an operator never knows the source of the proceeds of a cash-based player, a crypto solution offers a higher degree of transparency and security. Problem gamblers can easily have their payments frozen in certain situations.

BitBoss has big plans for the future. While its cashless solutions offer a great amount of convenience to the gambling industry, it isn’t the true extent of their potential. It is possible that in the future people will be able to use stablecoins for much more than placing a bet and enjoy a higher level of security when paying. BitBoss will continue striving to be on the frontlines of innovation.