As the adoption of digital currencies gathers traction, Visa Inc (V.N), the world’s largest payment processor, launched a global cryptocurrency advising service for clients such as banks and merchants on Wednesday.
Visa’s move comes amid record investor demand for crypto services, and the company’s latest offering is aimed at financial institutions looking to attract or retain customers with a crypto offering, retailers interested in non-fungible tokens (NFTs), and central banks looking into digital currencies.
Visa’s services include educating institutions about cryptocurrencies, allowing clients to use Visa’s network for digital offers, and assisting with backend operations.
“We came to Visa to learn more about crypto and Stablecoins and the use cases that are most relevant for our retail and commercial business lines,” said Uma Wilson, executive vice president at UMB Bank, a regional U.S. lender.
According to a new Visa global study, nearly 40% of cryptocurrency owners surveyed are likely or very likely to transfer their primary bank to one that offers crypto-related goods in the next 12 months.
Visa’s network is now used to facilitate the purchase, sale, and custody of digital currency. It also offers a credit card that allows users to earn bitcoin when they make purchases, as well as the ability to settle transactions on its payment network using USD Coin, a stablecoin cryptocurrency whose value is fixed directly to the US dollar.
However, price stability is required for cryptocurrencies like bitcoin to be used as a medium of exchange, according to Visa’s Chief Financial Officer Vasant Prabhu.
“If the price is going to fluctuate from $60,000 to $50,000 in a few hours, it’s a very difficult thing for a merchant to accept (bitcoin) as a currency,” Prabhu said.
Furthermore adding that, Visa would facilitate such transactions when the time was right. “I don’t know if cryptocurrencies like bitcoin will ever be a medium of exchange. Stablecoins will.”
To read our latest blog on hacked MS Excel files which everyone should aware off, click here.
