In response to the growing popularity of digital currencies, Visa Inc, the world’s largest payment processor, on Wednesday launched a global crypto advisory service for clients such as banks and also merchants.
Furthermore, In the wake of unprecedented investor interest in crypto, Visa’s latest offering addresses financial institutions looking to attract or retain customers through a crypto offering, retailers looking to leverage non-fungible tokens (NFTs), and central banks investigating digital currencies. In addition to educating institutions about cryptocurrencies, Visa’s services include allowing clients to use the payment processor’s network for digital offerings and providing back-end support.
Uma Wilson, executive vice president at UMB Bank, a regional U.S. lender, says she came to Visa to learn more about crypto and stablecoins, and to learn the applicable use cases for retail and commercial business lines. Almost 40% of crypto owners surveyed in a new global study by Visa are likely or very likely to switch banking providers in the next 12 months, according to the study.
Visa uses its network to facilitate the buying, selling, and custody of digital currencies. Besides its credit card that lets users earn bitcoin for purchases, it also allows USD Coin, a stablecoin cryptocurrency whose value is directly tied to the U.S. dollar, to settle transactions on its payment network.
Reuters reported that Bitcoin’s price stability is vital for its use as a medium of exchange, according to Visa’s Chief Financial Officer Vasant Prabhu.
Prabhu said that if the price fluctuates from $60,000 to $50,000 in a few hours, accepting bitcoin as a currency must be a very difficult thing. Stablecoins, he explained, will serve as a medium of exchange, not cryptocurrencies like bitcoin. When the time is right, Visa will facilitate such transactions.
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