Visa Cryptocurrency

Visa launches crypto advisory service for financial institutions, merchants

Visa launches crypto advisory service for financial institutions, merchants
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Visa Inc, the world’s largest payment processor, launched a global cryptocurrency advisory service for its banking clients and merchants on Wednesday, as the adoption of digital currencies gathers momentum.

The move is aimed at financial institutions eager to attract or retain customers with crypto offerings, retailers looking to delve into non-fungible tokens (NFTs) or central banks exploring digital currencies, the company said.

Visa’s services include educating organizations about cryptocurrencies, allowing customers to use a payment processor network for digital offerings, and helping manage back-end operations.

A new global study by Visa shows that nearly 40 percent of crypto owners surveyed said they are likely or very likely to switch their primary bank to a crypto-related bank in the next 12 months.

Visa is set to launch services this year that will allow buying, selling and holding digital currencies through its banking partners.

There are also a number of Visa card programs that allow users to earn Bitcoin on purchases and the network will also allow its customers to use USD Coin, a stable cryptocurrency whose value is pegged directly to the US dollar, to settle transactions on its payment network. .

However, in order to use cryptocurrencies like bitcoin as a medium of exchange, price stability is needed, Visa chief financial officer Vasant Prabhu told Reuters.

“If the price is going to fluctuate from $60,000 to $50,000 in a few hours, it will be very difficult for a trader to accept (Bitcoin) as a currency,” Prabhu said.

“I don’t know if cryptocurrencies like bitcoin will become a medium of exchange. Stablecoins will work,” he said, adding that Visa will facilitate such transactions when the time is right.

(Reporting by Noor Zainab Hussain in Bengaluru; Editing by Shalish Cooper)

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