The pilot phase that Visa has launched will be in partnership with crypto.com, which is a crypto and payment platform.
Visa announced that they would allow the use of USD Coin (USDC) on their payment systems. USDC is a form of cryptocurrency that is offered at the same value as the U.S Dollar. This decision by Visa comes at a time when other finance players such as MasterCard have also embraced the use of digital currencies. These firms believe that the use of digital currencies will alter how future investments will be made.
One of the world’s biggest investors, Elon Musk, stated that people could start purchasing Tesla using Bitcoin. This marks the beginning of digital currencies being used for e-commerce purposes.
How will this move help Visa customers?
In a statement provided by Cuy Sheffield, who is the head of crypto transactions at Visa, there has been an increased demand by customers to be able to access, store and use digital currencies via the Visa platform. This demand has pushed Visa to create a product that will provide digital currency access to its customers.
Before Visa launched this new concept, customers who used the Visa card to transact on crypto.com had to change the digital currency they held on their crypto wallet into fiat currency. The money would then be deposited into the customer’s bank account, after which they would now use it to settle transactions using the Visa card. This made cryptocurrency transactions on the Visa platform lengthy, hectic and complex.
The latest move by Visa will make sure that customers can now directly make purchases using digital currencies on the platform. The Visa crypto platform will be powered by the Ethereum blockchain and this means that a customer will not have to change their digital currency into fiat currency for them to settle transactions.
To complete the transactions for the first month, Visa has collaborated with Anchorage, a digital assent bank, and crypto.com, which will send USDC tokens to Visa’s Ethereum blockchain address. Visa is also looking to add more cryptocurrencies to its platform.
According to recent data in the crypto market, the use and popularity of cryptocurrencies have been at an all-time high. The increased demand and use of digital currencies have pushed major financial players to adjust their working models so that they can remain relevant. Regulatory authorities are now keener in making sure that the use of cryptocurrencies is regulated to protect both the consumers and financial institutions.