8th April 2021
The year 2020 has shown that many changes in the financial market are having the spillover effect and influence other industries as well. The fact that the popularity of bitcoins or other cryptocurrencies were, led to the fact that people started admitting its advantage and start using it more widely. The major companies in the countries like the US, Japan, Germany, or Switzerland started implementing cryptocurrencies as a payment method that also worked in favor of increasing demand on the market. To make it clear with the example, Tesla is already receiving the payments in bitcoin, and if you are a holder of bitcoin amount you can buy a car. PayPal is going to support the crypto transactions and now, it is announced that Visa is going to follow the steps as well.
Visa in the crypto-industry
Visa announced that it is making its first steps in bridging the worlds of digital and traditional fiat currencies: the use of USD Coin (USDC), a stablecoin backed by the US dollar, to complete a transaction with Visa over Ethereum—one of the most actively used blockchains. Visa is leading the capability with Crypto.com, a Visa partner and one of the world’s largest crypto platforms, and plans to offer the USDC arrangement capability to additional partners later this year.
Support for digital currencies as a new type of settlement currency signifies a great step forward for Visa’s network strategy, which is designed to improve all forms of money movement, whether on the Visa network or beyond. By providing its global presence, partnership approach, and trusted brand, Visa is focused on combining differentiated value to the ecosystem and making cryptocurrencies more secure, safe, and widely used in the future. One of the reasons for it appeared to be the increased popularity of digital coins and their ability to easily adjust to new things and spread over many industries because during the global pandemic we all saw the increased popularity of Bitcoin casino games and the companies that were clever-enough to predict that supporting the above-mentioned system would be profitable, now are thriving. The main advantage of supporting the cryptocurrency and its whole system is that it gives services that cannot be provided otherwise, meaning easy and quick transactions, without the necessity of third-party involvement.
Visa’s standard settlement method requires partners to settle in a traditional fiat currency, which can increase cost and complexity for businesses built with digital currencies. The ability to settle in USDC can ultimately help Crypto.com and other crypto-oriented companies to evaluate essentially new business models without the need for traditional fiat in their treasury and settlement workflows. Visa’s treasury grades and integration with Anchorage also strengthen Visa’s ability to quickly support new central bank digital currency (CBDC) as they emerge in the future.
David Puth, the CEO of Centre, announced that Visa is leading the market with its innovative path to payments in many forms and that they are very impressed with their efforts. Having USDC on the Visa network is an unusual next step in their mission to connect the world using stablecoins built on Centre standards, starting with USDC.
Summing it up
Finally, to sum up, there are a lot of industries that are having the influence from the increased popularity of the crypto-industry. Some of the companies appeared to be ready for the new challenges and started thinking about the ways in which they could adapt the world of their companies to the new practice. As a result, we have a lot of companies that are receiving payments in cryptocurrencies and the trend is going to continue worldwide. Some countries are open to new tools in the financial sector, but some of them are restrictive. However, when it comes to multinational companies, the decision for them is easier to make. The example of Visa tells us that the trend is having a valid argument and the world is going to alter to the new reality, however, not everyone will be able to adapt to the new reality as quickly as the multibillion-dollar companies and they still have a lot of work to do.