Visa revealed on Monday (29) that it will allow the use of cryptocurrencies to settle transactions in its payment network. The move reflects the growing acceptance of digital currencies by the traditional financial industry.
In principle, the financial services company will use the USD Coin (USDC), a stable cryptocurrency backed by US dollars. According to the statement, all transactions with Visa will be recorded on the Ethereum blockchain.
Visa’s pilot program will take place in partnership with the payment platform Crypto.com. So, when a person pays something using a company card, the transaction will be charged directly in USDC – removing conversion costs.
“Crypto-native fintechs want partners who understand their business and the complexities of digital currency factors,” explains Jack Forestell, executive vice president at Visa.
Forestell says it is an important milestone to be able to meet the needs of the fintechs who manage their business in a stable cryptocurrency. Then, he classifies the process as an extension of the services provided by the financial company.
“It is really an extension of what we do on a daily basis, safely making payments in all different currencies around the world safely”, concludes the executive.
Ad reflects on Bitcoin
According to Reuters, the news has already had an effect on the value of Bitcoin. The digital currency rose 4.5% and reached a price of $ 58,300, approaching the record above $ 61,000 in early March.
Visa now leads a movement of traditional financial companies that will accept the use of cryptocurrencies. For example, Mastercard has already indicated the possibility of using digital currencies for investment and payment purposes.