Visa has stated that it will allow the use of the cryptocurrency USD Coin to settle and complete financial transactions on its payments network, as USD Coin is a stable digital currency whose value is directly linked to the US dollar.
Visa’s decision represents another step in the financial sector’s move towards accepting cryptocurrency, as the company has launched its pilot project with the payments and crypto platform Crypto.com and plans to offer similar partnerships with other platforms later this year.
Visa’s move comes as major financial firms including BNY Mellon, BlackRock and Mastercard are adopting some cryptocurrencies, fueling predictions that cryptocurrencies will become a regular part of investment portfolios.
Tesla CEO Elon Musk said last week that it became possible for customers to buy the company’s electric vehicles using bitcoin, which also marked a significant shift in the use of the digital currency in commerce.
Normally, if a customer chooses to use their Crypto.com Visa card to buy a cup of coffee, the digital currency in their cryptocurrency wallet must be converted to fiat currency, then the customer’s wallet for cryptocurrency deposits the traditional fiat currency in a bank account, which will finally be linked to the Visa network to settle any financial transactions, which adds costs and a kind of complexity to corporate business, but what Visa will do using the Ethereum Blockchain platform will eliminate the need to convert digital currencies into traditional currencies in order to complete the financial transactions.
Visa added that it has partnered with digital asset bank Anchorage and completed its first test trade this month by sending USD Coin to Crypto.com’s Ethereum address at Anchorage Bank.