Visa allows consumers to use the cryptocurrency USDC to make payments
The world-renowned multinational financial services company Visa recently announced that it has reached a cooperation with the crypto platform Crypto.com to allow consumers to pay in cryptocurrency.
As a traditional financial service institution, this move by Visa is also considered to embrace cryptocurrency, but it needs to be emphasized that Visa does not allow consumers to use Bitcoin.
Cryptocurrencies such as Bitcoin have extremely high volatility, so it is indeed difficult to use them for payment. Usually, payment platforms use real-time prices for settlement to reduce losses.
In order to avoid this problem, Visa allows consumers to use cryptocurrency USD Coin (USDC) for settlement, which is a cryptocurrency that is directly linked to the U.S. dollar.
“Visa-Mastercard Reversion”by The Logo Smith is licensed under CC BY-NC-ND 2.0
The advantage of using USDC for settlement is that there is no huge volatility like Bitcoin, which is why Visa only supports users to use USDC for the time being.
In fact, the Visa credit card can also be used for encrypted currency payments before, but the payment platform will automatically convert the encrypted currency into legal currency in the process.
Then settle with fiat currency and deposit the fiat currency into the bank. The payment platform will transfer the payment amount to the merchant through the banking institution on the next day to complete the payment process.
The cooperation between Visa and the payment platform directly simplifies this process. It is reported that Visa uses the Ethereum blockchain for settlement without pre-conversion to legal currency.
Visa currently supports only stable currency payments, so it’s no problem to keep centralized and settle regularly with currency developers.
Visa seems to be very active in promoting cryptocurrency payments. The company has taken the lead in using cryptocurrency to settle settlements with Anchorage at the beginning of this month.
Anchorage is a new type of banking institution engaged in digital assets. During the test, Visa sent the first USDC currency to the bank’s Ethereum wallet through the cooperation platform.
After completing the final test, Visa announced the payment of encrypted currency for payment. Of course, as mentioned above, Visa only plans to support certain types of USDC.
It is unclear whether or not cryptocurrencies such as Bitcoin or Ethereum will be supported for settlement in the future, but it stands to reason that supporting Bitcoin payments should be inevitable.
Via: CNBC
