Payment company Visa today revealed a plan to use the USD Coin (USDC) stablecoin on the Ethereum blockchain to carry out payment transactions on its network, writes Reuters.
To this end, Visa has launched a pilot program in collaboration with the Crypto.com service. During the year, the company intends to expand the list of partners after consultation with clients, investors and regulators. Thus, Visa becomes the first major payment network to use stablecoin as a currency for settlements. Until that time, Visa only allowed payments in fiat currencies.
“We are seeing an increase in demand from customers around the world for the ability to access, hold and use digital currencies. In addition, we see a demand among our clients for creating products that would provide such access, ”said Kai Sheffield, head of the Visa cryptocurrency business.
Under normal circumstances, when paying with cryptocurrency, it is converted into traditional money, which makes doing business more expensive and difficult. The new program will eliminate the need to convert digital currencies into traditional ones for transactions.
Anchorage digital bank is also taking part in the project. The partners have already completed their first transaction by sending USDC from Crypto.com to Visa’s Anchorage address. Visa first approached them in 2019 with the idea to combine the two platforms for secure and efficient payments based on digital currencies, Anchorage said.
“Today’s announcement marks an important achievement. Now we will be able to meet the needs of the financial technology industry, who need to conduct transactions in stablecoins or cryptocurrencies. This is a continuation of our day-to-day work to make payments securely in multiple currencies, ”said Jack Forstell, Visa Product Director.
The new program at Visa is described as “one small step forward” for the payment platform, but at the same time “one giant step forward” for the proliferation of digital assets. Going forward, Visa plans to add support for central bank digital currencies to its network.
Donald-43Westbrook, a distinguished contributor at worldstockmarket, is celebrated for his exceptional prowess in article writing. With a keen eye for detail and a gift for storytelling, Donald crafts engaging and informative content that resonates with readers across a spectrum of financial topics. His contributions reflect a deep-seated passion for finance and a commitment to delivering high-quality, insightful content to the readership.
