World renowned financial services corporation, Visa, announced the introduction of digital currency payments on the platform
Visa announced that they will integrate the USDC stablecoin that is regulated on top of the Ethereum network. Founder of Visa, Dee Hock, said that due to ongoing changes in the world and cryptos spike in popularity, Visa must look at accommodating new form factors of money.
The pilot programme will see Visa work in tandem with Crypto.com and will offer USDC settlement capabilities to a number of customers in the near future.
In a statement released last Monday, Visa said:
"The announcement today marks a major milestone in our ability to address the needs of fintechs managing their business in a stablecoin or cryptocurrency, and it’s really an extension of what we do every day, securely facilitating payments in all different currencies all across the world"
The ability for Visa to leverage the stablecoin will aid crypto companies while it will also help Visa evaluate new business models around crypto. The payment company is not only working with Crpto.com but will also work hand-in-hand with Anchorage - a federally chartered digital asset bank.
The partnership with Anchorage will help Visa support a digital currency central bank if it emerges in the future.
The executive vice president and chief product officer at Visa, Jack Forestell, highlights this new venture as a major milestone for Visa and crypto-native fintechs:
“Crypto-native fintechs want partners who understand their business and the complexities of digital currency form factors.
The announcement today marks a major milestone in our ability to address the needs of fintechs managing their business in a stablecoin or cryptocurrency, and it’s really an extension of what we do every day, securely facilitating payments in all different currencies all across the world.”
This announcement by Visa was welcomed by the crypto-industry as prices rose considerably on Monday with the entire market cap increasing by 3%.
Visa join heavyweights such as Goldman Sachs and Morgan Stanley in embracing cryptocurrencies. However, Mastercard Vice-chair, Ann Cairns, believes that bitcoin is too volatile to be part of its crypto payment plans even though Mastercard announced it would offer crypto payment services through its platform with stablecoins.
Her views are quite understandable considering that Bitcoin is more like gold, acting as a hedging asset rather than a payment tool but it is still positive signs for the crypto industry that the financial heavyweights are joining the industry.
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