While, governments of some countries are bent on turning their backs on Crypto, businesses around the globe keeps embracing the use. Visa Inc has announced that the company will allow the use of cryptocurrency to settle transactions. According to a report by Reutersâ€˜ exclusive coverage.
In this new move, the American finance company revealed that it will make use of stable coin USD Coin to settle the transactions on its network. This new development becomes yet another major step towards the adoption of cryptocurrency.
Visa Partners With crypto.com For Use OF Cryptocurrencies!
Visa has launched this pilot program with cryto.com, a popular payment and crypto platform. For those whoâ€™re unaware, the service also provides Visa cards to its users. With that said, Visa has ensured that it will add more partners by the end of this year. Earlier today, Visa executed the first transactions settled in USDC.
For those whoâ€™re unaware, USDC (or USD Coin) is a stable coin cryptocurrency launched byÂ CoinbaseÂ and Circle in 2018. The USDC is pegged directly to the U.S. dollar with a 1:1 ratio. In fact, it is the 12th largest cryptocurrency in the market at the time of writing this. According to the company, the sudden move comes after looking at the â€œincreasing demand from consumers across the world to be able to access, hold and use digital currenciesâ€.
With this new move, Visa aims to strip out the need to convert digital coins into traditional money for settled transactions. For this very purpose, the company will be using the Ethereum blockchain. For instance, if you decide to pay for a coffee using a Crypto.com Visa card, then the digital currency in your cryptocurrency wallet needs to be converted to traditional money.
To settle the transaction, the cryptocurrency wallet will then deposit traditional fiat currency in a bank account. It will then be wired to Visa at the end of the day. The entire process sounds quite complex and might be costing the company excess resources. To fix this annoying problem, Visa decided to make use of the Ethereum blockchain to settle payments.
The company has partnered with digital asset bank Anchorage. In fact, it has settled the first transaction in which Crypto.com sent USDC to Visaâ€™s Ethereum address at Anchorage.
Businesses Now Embracing The Use Of Cryptocurrency!
Visa is not the only company to openly accept the rise of digital currencies. In fact, Tesla recently announced that customers can now buy its electric vehicles with bitcoin. Other financial companies such as BNY Mellon, BlackRock Inc, and Mastercard Inc have also taken the step to make more use of cryptocurrencies.