Visa to permit payment settlements using cryptocurrency
BENGALURU: American multinational financial services Visa Inc has said it will allow the use of the cryptocurrency USD Coin to settle transactions on its payment network, the latest sign of growing acceptance of digital currencies by the mainstream financial industry.
As per details, the visa announced Monday that it now settles payments in the USDC stable coin on the Ethereum blockchain. The development means Visa has become the first major payments network to use stablecoin as a settlement currency. Until now, Visa settled payments in fiat currencies only.
Visa Becomes First Major Payments Network to Settle Transactions in Stablecoins (USDC)https://t.co/Ue6zUyTnGj #Stablecoins #VISA #Ethereum
— Stablecoins.eth (@LCBrocklehurst) March 29, 2021
For its new USDC settlement capability, Visa is initially working with Crypto.com as part of a pilot program, letting the crypto firm manage its card business now entirely in digital assets.
Earlier, Visa’s standard settlement process required Crypto.com to settle in a fiat currency, which added cost and complexity for the firm. Now Crypto.com won’t have to go through conversations and settle with Visa directly in USDC.
“The announcement today marks a major milestone in our ability to address the needs of fintech managing their business in a stable coin or cryptocurrency,” said Visa’s chief product officer Jack Forestell. “And it’s really an extension of what we do every day, securely facilitating payments in all different currencies all across the world,” he added.
"Visa has launched the pilot program with payment and crypto platform https://t.co/lA9gTFzmRK @cryptocom and plans to offer the option to more partners later this year…."#visa #crypto #btc https://t.co/rH1B6wVSmV
— D.B.ONE (@TheFATEof2021) March 29, 2021
Crypto.com co-founder and CEO Kris Marszalek said the firm wants to enable “millions of consumers across the world to access and use digital currencies,” and Visa’s capability to “directly accept and interact with digital currencies” helps enable it to maximize the benefits of digital currencies.
