Visa said on Monday it will allow the use of the cryptocurrency USD Coin to settle transactions on its payment network.
It was the latest sign of growing acceptance of digital currencies by the mainstream financial industry.
Visa has it will allow the use of the cryptocurrency USD Coin to settle transactions on its payment network, the latest sign of growing acceptance of digital currencies by the mainstream financial industry.
Visa has launched the pilot program with payment and crypto platform Crypto.com and plans to offer the option to more partners later this year, it said.
The USD Coin (USDC) is a stable coin cryptocurrency whose value is pegged directly to the U.S. dollar.
Visa’s move comes as major financial firms including BNY Mellon, BlackRock, and Mastercard have embraced some digital coins, sparking predictions that cryptocurrencies will become a regular part of investment portfolios.
Tesla boss Elon Musk said last week that customers can buy its electric vehicles with bitcoin, marking a significant step forward for cryptocurrency’s use in commerce.
“We see increasing demand from consumers across the world to be able to access, hold and use digital currencies and we’re seeing demand from our clients to be able to build products that provide that access for consumers,” Cuy Sheffield, head of the crypto at Visa, said.
Traditionally, if a customer chooses to use a Crypto.com Visa card to pay for a coffee, the digital currency held in a cryptocurrency wallet needs to be converted into traditional money.
The cryptocurrency wallet will deposit traditional fiat currency in a bank account, to be wired to Visa at the end of the day to settle any transactions, adding cost and complexity for businesses.
Visa’s latest step, which will use the ethereum blockchain, strips out the need to convert digital coins into traditional money in order for the transaction to be settled.
Visa said it has partnered with digital asset bank Anchorage and completed the first transaction this month — with Crypto.com sending USDC to Visa’s Ethereum address at Anchorage.
This is huge. We have seen Tesla making moves and brands like Visa coming up with the needed infrastructure to ensure that transactions can happen without physically converting digital money into traditional money. This means, Visa will trail blaze on a scale for retail transactions and this is where everything really matters.
Am watching African brands wondering what are they waiting for?