Visa announces crypto settled transactions! Visa announces crypto settled transactions using stablecoins, saying this was an important step into bringing cryptocurrencies into the payments and commerce mainstream.
Visa’s settlement capabilities to accept cryptos is an upgrade, according to Cuy Sheffield, VP and head of Crypto at Visa. The upgrade will allow crypto-native companies to form new business models without grappling with traditional fiat in their treasury and settlement workflows. Fiat-denominated cryptocurrencies are going to be settled, cleared, and treated like any of the 160 fiat-denominated currencies that visa clears and settles.
Sheffield also said that in order for cryptos to become an accepted payment methods, streamlining how crypto transactions are settled is key. The change should and will be invisible to the consumer and the merchant, but it sets the stage for more widespread use of digital currencies.
Visa also announced Monday that it has been piloting its settlement capability with crypto.com over the Ethereum blockchain on the Visa network. They plan on offering the USD Coin in doing so.
The pilot program with Crypto.com has allowed Crypto.com to send USDC to Visa to settle a portion of obligations tied to the Crypto.com Visa Card Program. This settlement is possible due to Anchorage, the first federally chartered digital asset bank and exclusive Visa digital currency settlement partner.
Visa’s and Crypto.com’s use of Stablecoins like USDC isn’t a one-off event. Use of Stablecoins is on the rise, especially USDC, which is supported by Centre, a consortium founded by Circle and Coinbase.
Because of this partnership and using Stablecoins, crypto.com Visa users can use their debit cards like they would with any debit card – once they do, merchants can accept fiat while settlers can settle in crypto.
It’s through this that the easing of using a digital currency for payment settlement becomes easier – its simpler and neater to convert Bitcoin into a Stablecoins than it is to convert Bitcoin into fiat. Looking ahead, there’s no doubt that there’s a future for Stablecoins like USDC.
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