Visa has announced that it will allow transactions to be settled using the stablecoin cryptocurrency USD Coin.
Visa announced today that it will allow the use of stablecoin USDC (a cryptocurrency pegged to the dollar) to settle transactions on its payment network, according to Reuters. In a test conducted earlier this month, Crypto.com sent a USDC transaction to Visa’s Ethereum address on the Anchorage crypto custody service.
According to today’s announcement, Visa’s use of the Ethereum blockchain eliminates the need to convert digital currencies to traditional money before the transaction can take place, eliminating pre-existing complexities for businesses.
The USD currency is a stablecoin – a crypto asset that is pegged to the US dollar.
The move comes at a time when large institutions like BNY Mellon, MicroStrategy, and PayPal have embraced the cryptocurrency sector. Earlier this month, Tesla invested $ 1.5 billion in Bitcoin, indicating how attractive the cryptocurrency industry is proving to be for large investors.
We see a growing demand from consumers around the world to be able to access, hold and use digital currencies, and we are seeing demand from our customers to be able to create products that provide that access to consumers, “said Cuy Sheffield, head of crypto at Visa.
Part of that growing demand is taking place in Latin America, where consumers want access to cryptocurrencies not only as protection against inflation of national currencies, but as a means of spending. According to a survey conducted by Visa last month, 25% of credit card users in Latin America would want to experiment with cryptocurrencies if payment processors gave them that opportunity.
But Visa’s pivot in the crypto industry doesn’t stop there. According to CEO Al Kelly, Visa is also looking to “allow the purchase of Bitcoin with Visa credentials.”