Visa Moves to Allow Cryptocurrency Payment Settlements

May, 2021 - By SMI

Visa announced on March 2021, that it will accept the cryptocurrency USD Coin to accept transactions on all its payments system, the recent indication of the mainstream financial industry's increasing implementation of electronic currencies.

According to Reuters, the group introduced the pilot scheme with cryptocurrency site Crypto.com and payment, and they are looking to develop the scheme for more and more collaborations. Bitcoin, the famous crypto currency, jumped very high, increasing even more as 4.5% to US$58,300 and moving back toward a record high above $61,000 set earlier in March 2021. Visa later announced the updates in a declaration. Visa's announcement comes as financial institutions such as Black Rock, BNY Mellon and MasterCard start taking steps to increase their use of crypto currencies for payment and investment. Elon Musk, the Chief executive Officer of Tesla announced on March 2021, that clients can pay for their electric cars with bitcoin, in the hopes of encouraging more widespread use of electronic currency. Cuy Sheffield, Visa's chief of bitcoin stated that they are noticing growing demands from people worldwide were able to obtain, use and hold electronic money, and they are seeing demand from their clients to develop products that do provide access for consumers.

Moreover, if a consumer decides to pay for a coffee with a Crypto.com Visa card, the cryptocurrency held in the account should be transformed into traditional money. The digital currency wallet will transfer the government issued fiat currency in a bank account, which will then be linked with the Visa by the end of the day to pay for any money transfers, raising the value and variability for businesses. Visa's most recent stage, that will be using the Ethereum blockchain, eliminates the need to transform virtual money into traditional money in order for the payment to be resolved.