Uber was suppressed in Argentina, and Bitcoin became the savior!

The Argentine subsidiary of international ride-hailing giant Uber has turned to Bitcoin payments after facing a crackdown by the local government.

Bitcoin startup Xapo has told CoinDesk it has entered into a partnership with Uber that will allow the ride-hailing company to accept Xapo’s bitcoin debit card as a payment method when traveling both domestically and internationally.

The news was first revealed by Uber's Argentine subsidiary on Twitter. The Silicon Valley startup has encountered suppression by the Argentine government, which believes that Uber's operations in Argentina are illegal.

So far, local police in Argentina have carried out raids on individuals involved with the company, and authorities have also taken steps to prevent local payment providers from processing transactions for Uber, AFP reported.

Xapo representatives said they viewed the incident as an opportunity to promote the company's product, which will allow users to pay with Bitcoin through Xapo's debit cards.

Xapo product manager Anni Rautio told reporters: "This is a win for all local Uber users and car owners, and Uber as a company will continue to operate in Argentina through Xapo's debit card. This is also good news for Bitcoin: this step brings it one step closer to being adopted by mainstream companies."

Rautio said the partnership began last week and Xapo has seen a surge in interest in its debit card product following the announcement.

Local news sources say 550,000 users have downloaded the Uber app, and that momentum is likely to continue.

It is reported that before reaching a cooperation with XAPO, Uber Argentina has also established cooperation with other alternative payment companies, including CardNow, Papipago and Neteller.