The global reception to digital currencies is set to reach another level as even the established fintech companies are beginning to gain traction in this money market. Even conventional finance companies like Visa Inc will soon be jumping onto this bandwagon.
Growing acceptance of cryptocurrencies
Visa Inc, the global electronic funds’ company recently announced that it will start allowing cryptocurrency USD Coin on its payment network. This was done through the pilot program Visa entered with Crypto.com. USD Coin (USDC) is a cryptocurrency where its value is directly pegged to the value of the US dollar (USD) and is known as a stable coin.
Not the first but surely not the last
This move by Visa is not new as many others have already incorporated digital currencies into their platforms. Its closest competitor Mastercard Inc has already done so together with BlackRock Inc and BNY Mellon. Such moves clearly show that cryptocurrencies have slowly but steadily become an integral part of investor’s plans. The announcement by Tesla Inc boss Elon Musk that customers could use Bitcoin to buy its electric vehicles also seems to push this platform further.
Visa’s venture into this market is not entirely new. In the past, customers could use their Crypto.co Visa card to pay for transactions. However, it still needs to be converted to the traditional currency where the crypto will be deposited into the bank account before being wired to Visa. This means it was tedious and costly. With this new integration, Visa eliminates the conversion process and using the ETH blockchain makes it easier and way more efficient.