Visa Accept Payment Settlement by Using Cryptocurrency
source thestar
Visa has allowed the use of cryptocurrency USD Coin to settle transactions on its payment network which is the latest sign of accepting the digital currencies by the mainstream financial industry. The pilot program with payment and crypto platform Crypto.com and plans to offer the option will be available to more partners later this year.
Visa’s along with other major finance firm including BNY Mellon, BlackRock and Mastercard have embraced some digital coin which will become a regular part of investment portfolios in future. Tesla, announced last week that a customer can buy their electric vehicles with bitcoin which marks a significant step for the cryptocurrency’s use in commerce.
If a customer choose to use a Crypto.com Visa card to purchase a coffee, the digital currency held in a cryptocurrency wallet will need to convert into traditional money first and then the cryptocurrency wallet will deposit traditional flat currency in a bank account then will be wired to Visa at the end of the day to settle any transactions with added cost and complexity for businesses.
Visa’s latest step, which they will use the Ethereum blockchain to strips out the need to convert digital coin into traditional money in order for the transaction to be complete. Visa will partner with digital asset bank Anchorage and complete their first transaction this month with Crypto.com sending USDC to Visa’s Ethereum address at Anchorage.
source scmp.com