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Cryptocurrency Card usage increased significantly in 2021: VISA

source-logo  thecoinrepublic.com 09 July 2021 14:57, UTC

Crypto linked cards have done business worth $1 billion during the first half of 2021

  • Visa building new ecosystem to enable greater use of cryptocurrency
  • Financial institutions renewed interest in Bitcoin and other crypto-related assets
  • The Visa balance sheet does not include Bitcoin

According to Visa, crypto-linked cards have done business worth $1 billion during the first half of 2021. While revealing the huge increase in spending via crypto-linked cards, the financial giant has also expressed its desire to create an ecosystem that will increase the usage of cryptocurrency assets.

A report by CNBC reveals that Visa users had bought goods and services through their crypto-linked cards in the first half of 2021, worth a whopping $1 Billion. Talking to CNBC, Visa CFO Vasant Prabhu underlined the growing importance of Bitcoin and other digital currencies.

Prabhu discussed the new ecosystem and how it will enable greater use of cryptocurrency assets just like any other fiat currency. Today consumers are finding innovative ways to use their cryptocurrencies for wares which they buy by paying fiat currencies.

Cryptocurrencies bypass the traditional banking pathways saving money

Cryptocurrencies work on blockchain technology and therefore avoids the traditional banking pathways saving money as well as time. Real-time transfer of funds has become a reality. There are many issues in terms of volatility, but it is up to the owners of digital currencies to manage and track.

The trend of consumers buying cryptocurrencies at these various regulated exchanges is continuing, and we can see a lot of volume on our network, Prabhu added.

Visa also has plans to include Bitcoin and other digital assets in its inventory. It was revealed earlier during a Fortune’s Leadership Next podcast by Visa CEO Al Kelly.

Financial Institutions Renewed Interest in Cryptocurrency Assets

Many big financial institutions have also started taking an interest in Bitcoin and other crypto-related assets. Tesla, MicroStrategy and Meitu are just a few mega-companies that have added Bitcoin(BTC) and other cryptocurrencies to their balance sheet.

The Visa balance sheet does not include Bitcoin.

However, Visa is not holding any Bitcoin, and the Visa CFO categorically confirmed this. Prabhu confirmed that the Visa balance sheet does not include Bitcoin or other crypto assets. Visa only has dollars, euros, pounds, currencies that it gets paid in or pays people in. Visa also does not have any plans to hold any cryptocurrency shortly, added Prabhu.

Visa also said that it would include the FTX cryptocurrency platform, founded by billionaire Sam Bankman-Fried into its Fintech Fast Track programme. Its primary aim is to make cryptocurrency smarter for investors and users.

Visa revealed that consumers are increasingly using cryptocurrency to buy goods and services. Only a fraction of this amount was spent in the previous years during the same period. However, CNBC has stated that Visa has not released any data.

Visa’s rival MasterCard, in a study, revealed that 93% of people residing in North America plan to use crypto tokens as a currency and are also amenable to other emerging payment technologies such as biometrics, contactless, or QR code systems in the next year.

In April, CoinBase became the first exchange that solely dealt with Crypto coins to step into the US stock exchange with its debut on Nasdaq. The high popularity of Bitcoin helped it in this venture. However, it has seen a major dip in its values of late. Cryptocurrency Outages is regularly reported globally, especially after the tanking in values of Bitcoin and other crypto tokens on May 19.

thecoinrepublic.com