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Visa setting foot on the cryptosphere in a massive way - TCR

Finance

www.thecoinrepublic.com 29 April 2021 23:06, UTC
  
Reading time: ~3 m

  • Visa is now ready to step into the cryptosphere and integrate crypto-related facilities
  • The credit card giant is focusing on five different opportunities to integrate crypto-related services
  • The firm is also planning to work with central banks around the world and help them roll-out CBDCs

Visa, an America-based credit card giant, has plans to step into the cryptosphere. On Wednesday’s Q2 2021 earnings call, Al Kelly, the CEO of Visa, revealed the firm’s upcoming plans related to cryptocurrencies. According to Kelly, the firm will be massively leaning on the cryptosphere, and he thinks that they are well-positioned to take such steps. Following the statement, the credit card giant will outline five activity areas. 

Visa is focusing on five different opportunities

According to Kelly, in the cryptosphere, Visa sees two market segments in the current scenario. On one side, the firm is considering Bitcoin as digital gold because it doesn’t get used much as a payment method because of its high transaction fees. 

On the other side, the firm has kept stablecoins and central bank digital currency (CBDC). According to the credit cards giant, cryptos like stablecoins and CBDC are pegged with the existing fiat currencies. 

Notably, Kelly pointed out that such currencies are emerging as payment methods. Following the scenario, Visa kept its primary focus on five different opportunities in the cryptosphere.

Visa’s five opportunities its focusing on

According to Kelly, the first opportunity is basically at the core, which is enabling its users to make purchases using cryptocurrency. The firm is already working with other wallets and exchanges to achieve that goal. 

Secondly, the credit card giant will enable crypto-asset cash-outs to fiat. Indeed, the facility will have the users convert cryptos to order at any point and make the funds available for shopping. Furthermore, the firm is working with more than 35 digital asset platforms and wallets to facilitate such options. Such platforms and wallets also include Coinbase, BlockFi, and Bitpanda.

Visa’s team is also working on creating APIs. Such APIs can enable institutional users to purchase, custody and even trade cryptos. For these facilities, cryptos will be held by Anchorage, the first federal chartered crypto bank.

The fourth opportunity is the stablecoin settlement. Visa has upgraded its infrastructure to allow institutional clients to settle with cards in a stablecoin starting with USDC. 

And the last area of opportunity is to work for CBDC with central banks. Following many countries exploring for CBDCs, Visa thinks that such currencies could end up being proved to be quite valuable. Hence, the firm is in conversation with central banks and suggesting that it can also play a role in the development process.

It’s interesting to see such a credit card giant getting connected with the crypto industry. Indeed, this is the crucial fintech arm raise of the next decade.


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