VISA officially uses USDC as a form of payment
According to a report by Reuters, payment giant Visa firm announced today it will enable obligations in cryptocurrency on its own network.
“We see a growing need from consumers around the world to access, hold and use digital currencies, and we see a need from our customers to develop products that give consumers this access,” stated Cuy Sheffield. Head of crypto in Visa.
The firm has chosen USD Coin (USDC) as the initial cryptocurrency to be covered on its worldwide network. USDC is a stablecoin that’s 1: 1 pegged to the US dollar and is a joint project of that the cryptocurrency companies Circle and Coinbase.
The pilot program is a partnership with the cryptocurrency and payment platform Crypto.com. Visa intends to offer you the option to additional partners after this year, the report stated.
A significant milestone for the business as crypto and fiat networks converge. https://t.co/v70qC8n4Yy
– Crypto.com (@cryptocom) March 29, 2021
Previously, Crypto.com converted all customer payments from crypto into fiat almost immediately when they paid for products or services using the business’s Visa card. This meant that sellers like Crypto.com would deposit fiat money into a bank accounts and move it to Visa at the end of the day to process each transaction, which makes the transaction more costly and complicated.
Use Ethereum to process trades
The above is extremely similar to the way traditional exchanges or cryptocurrencies operate, which means that the cryptocurrency itself is converted to money and not transferred. But today with Visa’s new movement, all payments will be made directly on the Ethereum blockchain itself.
This would remove the requirement to convert crypto into fiat for the trade to happen.
Meanwhile, the move comes weeks later Visa declared it would begin a crypto enterprise. As CryptoSlate reported at the time, the company said the $ 1.7 trillion crypto industry “is too big to ignore” and it will work towards the worldwide adoption of Bitcoin, its powerful system of 70 million retailers.
“We’re trying to do two things. One is to allow the purchase of bitcoins with Visa credentials. And second, to work with a Bitcoin wallet so that Bitcoins can be converted into fiat currency and used immediately in any of the 70 million places in the world where Visa is accepted, ”stated Visa CEO Al Kelly at the moment.