(via ZEXPR) It comes as no surprise to know that Visa is currently the world’s leader in digital payments. Its advanced global processing network has for long provided secure and reliable payments around the world.
While being able to handle 65,000 transaction messages per second, the 60 million merchants of this global payment network will now be able to make the use of cryptocurrency USD Coin to settle transactions.
The Investment Center broker Phillip Sanders reviews the announcement made by Visa Inc. on Monday and reiterates how this is a good sign depicting the growing acceptance of digital currencies by the mainstream financial industry.
The First To Bridge The Gap
With Visa giving the green light on the use of USD Coin to settle a transaction, we see for the first time that a major industry plans on bridging the gap between the digital and traditional flat currency world.
The Investment Center broker Phillip Sanders explains how the company has currently launched this pilot program with Crypto.com, which is a Visa partner and one of the world’s largest crypto platforms. However, it plans on offering this option to more partners later this year.
Sanders further reiterates how the USD Coin which is a stable coin cryptocurrency was selected by the payment company as its value is pegged directly to the US Dollars. That with the use of Ethereum, one of the most actively used open-source blockchains, the company is well on its way to establishing fairgrounds for the settlement of payments using digital currencies.
Support For Digital Currencies Pours In
The recent surge in acceptance of digital coins among finance firms such as BNY Mellon, BlackRone Inc and Mastercard Inc has paved the way for Visa to come on board.
Sanders already predicts the prospects of cryptocurrencies becoming a regular part of investment portfolios. While the open-source of these currencies has always brought in objections, the recent regulatory demands have indeed helped enhance their credibility.
Elon Musk from Tesla Inc also gave the go-ahead last week, allowing customers to now buy electric vehicles with bitcoin. An affirmatory nod from one of the richest men in the world can surely work wonders and allow the use of cryptocurrency in commerce to gain prevalence.
The head of Crypto at Visa, Cuy Sheffield, spoke of this matter by stating how there is a great increase in demand from consumers around the world to access, hold and use these digital currencies. His point of view was plain and simple, to cater to the demand of the clients. Thus, it is no surprise that Visa would proceed to make a move in the crypto world.
Anchorage, which is the first federally chartered digital asset bank and is also Visa’s exclusive digital currency partner, works on this pilot program to strengthen Visa’s ability to directly support new central bank digital currency (CBDC) as they expand further in the future.
The executive vice president and chief product officer at Visa, Jack Forestell, speaks on how crypto-native fintechs demand partners that understand their business and the complexities that come with digital currency form factors.
He also marked the importance of the milestone that this project will prove to be and directed the limelight towards the company’s “ability to address the needs of fintechs managing their business in a stablecoin or cryptocurrency”.
He continues by directly relating it to their own endeavours in “securely facilitating payments in all different currencies all across the world.”
Making Transactions Easier
So, if you are looking to pay for coffee using a Crypto.com Visa card, traditionally, the digital currency would have to be converted into traditional fiat money. While that might not seem like a difficult task, it does add a whole lot of cost and complexity to businesses.
This is exactly why Visa’s latest step with Ethereum blockchain will help remove the need to covert the digital coins in order for the transaction to be settled. It has already completed its first transaction this month – via Crypto.com sending USD Coin to Visa’s Ethereum address at Anchorage.
Centre that issues stablecoins from licensed and regulated financial institutions also exhibited a similar narrative when its CEO David Puth spoke on how Visa will lead the market with its innovative approach to payments in many forms. While he seemed impressed with their efforts, he made sure to highlight the use of stable coins built on Centre standards – which include the USD Coin.
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