- Visa will allow cryptocurrency to settle transactions on its payment network.
- Bitcoin and other cryptocurrencies rise after Visa announced, it will enable the use of USD Coin.
- Visa partnered with Anchorage to carry out its first cryptocurrency transaction.
The Visa company said, it will allow the use of the cryptocurrency to settle transactions on its payment network. Visa’s move comes after major institutions such as Tesla, Mastercard, Bank of New York Mellon, and others have embraced cryptocurrencies in recent months.
Visa has launched the pilot program with the crypto platform (Crypto.com) and plans to offer the option to more partners later this year.
Cuy Sheffield, head of the crypto at Visa, said:
“We see increasing demand from consumers across the world to be able to access, hold and use digital currencies and we’re seeing demand from our clients to be able to build products that provide that access for consumers.”
Support for digital currencies as a new type of settlement currency marks an important step forward for Visa’s network of networks strategy, which is designed to enhance all forms of money movement, whether on the Visa network or beyond.
Traditionally, if a customer chooses to use a Crypto.com Visa card to pay for a coffee, the digital currency held in a cryptocurrency wallet requires converting into traditional money.
Bitcoin, the most popular crypto coin, jumped to a one-week high on the news, rising as much as 4.5% to $58,300 and heading back toward a record-high above $61,000 hit earlier this month.
Visa’s latest step, which will use the ethereum blockchain, strips out the need to convert digital coins into traditional money in order for the transaction to be settled. Visa’s treasury upgrades and integration with Anchorage also strengthen Visa’s ability to directly support new central bank digital currency (CBDC) as they emerge in the future.
Tesla Inc boss Elon Musk said last week that customers can buy its electric vehicles with bitcoin, marking a significant step forward for the cryptocurrency’s use in commerce.
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