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Visa moves to allow payment settlements using cryptocurrency

Visa moves to allow payment settlements using cryptocurrency
Written by publishing team

Visa said Monday that it will allow cryptocurrency in US dollars to be used to settle transactions on its payment network, the latest sign of the growing acceptance of digital currencies by the mainstream financial industry.

Visa has launched the pilot program with payment and crypto platform and plans to offer the option to more partners later this year, it said.

The US Dollar (USDC) is a stable cryptocurrency whose value is tied directly to the US dollar.

Visa’s move comes as major finance firms including BNY Mellon, BlackRock Inc and Mastercard Inc have embraced some digital currencies, fueling predictions that cryptocurrencies will become a regular part of investment portfolios.

Tesla Inc chief Elon Musk said last week that customers can buy their electric cars using bitcoin, which represents an important step forward for the use of cryptocurrency for commerce.

“We see a growing demand from consumers around the world to be able to access, hold and use digital currencies, and we see demand from our customers to be able to build products that provide that access to consumers,” Coy Sheffield, Head of Cryptography at Visa, said.

Traditionally, if a customer chooses to use a Visa card to pay for coffee, the digital currency in the crypto wallet must be converted to traditional money.

A cryptocurrency wallet will deposit traditional fiat currency into a bank account, to be wired via Visa at the end of the day to settle any transactions, adding to the cost and complexity for businesses.

Visa’s latest move, which will use the Ethereum blockchain, eliminates the need to convert digital currency into traditional cash in order to settle the transaction.

Visa said it partnered with digital asset bank Anchorage and completed its first transaction this month — sending USDC to Visa’s Ethereum address in Anchorage.

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