The list of financial technology companies that have jumped on the crypto bandwagon continues to grow. Payment companies such as Visa, MasterCard and pay-pal have had an interesting relationship with cryptocurrencies, they cracked down on crypto back in 2018 in the wake of the massive bubble caused in 2017. Visa is making strides in adapting to cryptocurrency and it really shows that crypto isn’t going anywhere for a long time.
Now, Visa is starting to accept block-chain technology. In a recent blog post from Visas website they stated “the concept of digital currency — or a digital version of cash controlled by a private key — was created more than a decade ago, with the launch of Bitcoin. Today, fiat-backed digital currencies, commonly referred to as “stablecoins,” have emerged as a promising new payment innovation, combining the benefits of digital currencies with the stability of existing currencies like the US dollar. It’s a concept that is gaining traction beyond fintechs, and now includes financial institutions and central banks. Consumers and businesses are also adopting digital currencies and circulation is growing rapidly, reaching over $10B in May.”
Visa’s public affirmation of its positive stance toward cryptocurrency payment services reflects its drive to remain a leading player in the global payment network. Visa Has been working closely with crypto brokers like “Coinbase” and “Fold” . They are doing this to form a connection between digital currencies and the global financial market. More than 25 digital currency wallets have linked their services to Visa, giving users an easy way to spend from their digital currency balance using a Visa debit or prepaid credential.
Visa has been involved in helping shape regulations and policies toward cryptocurrencies around the world. It has worked with the World Economic Forum to develop recommendations for central banks looking into the use cases of central bank digital currencies.
Visa filed a patent for a fiat linked cryptosystem using a central entity computer. This computer causes removal of the physical currency from circulation in a fiat currency system. The patent filing further explains that our payment system some day may come 100% digital and “cash may be removed from the markets in a frictionless manner” to improve the payment ecosystem. Especially during this pandemic cashless payment is growing at a rapid pace, many small businesses are only taking digital payment now and no cash transactions. Users will be able to hold the digital currency in a digital wallet such as someone who was to hold cash in their wallet.
Visa Revealed that users with cryptocurrencies utilizing this service could start using Visa Direct. This product allows consumers to make faster payments with cryptocurrencies that can be added to their Visa credentials, in real time. Visa stated “Through these efforts, Visa has become the preferred network for digital currency wallets, which are eager to deepen their value to users by making it quicker and easier to spend digital currency worldwide” Visa is taking big steps to change the world into only using digital payments. Visa is working with legislators and global organizations adapt to cryptocurrency they are drawing up recommendations that central banks can incorporate when creating a digital currency. Visa believes that digital currencies have the potential to extend the value of digital payments to a greater number of people and places. As such, we want to help shape and support the role they play in the future of money.