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Exclusive: Visa moves to allow payment settlements using cryptocurrency

Stock MarketsMar 29, 2021 08:55AM ET
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2/2 © Reuters. FILE PHOTO: A Visa credit card is seen on a computer keyboard in this picture illustration 2/2

By Noor Zainab Hussain

(Reuters) - Visa Inc (NYSE:V) said on Monday it will allow the use of the cryptocurrency USD Coin to settle transactions on its payment network, the latest sign of growing acceptance of digital currencies by the mainstream financial industry.

The company told Reuters it had launched the pilot program with payment and crypto platform Crypto.com and plans to offer the option to more partners later this year.

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 subsequently confirmed the news in a statement.

The USD Coin (USDC) is a stablecoin cryptocurrency whose value is pegged directly to the U.S. dollar.

Visa's move comes as finance firms including BNY Mellon (NYSE:BK), BlackRock Inc (NYSE:BLK) and Mastercard Inc (NYSE:MA) take steps to make more use of cryptocurrencies for investment and payment purposes.

Tesla (NASDAQ:TSLA) Inc boss Elon Musk, a major proponent of cryptocurrencies, said last week that customers can buy its electric vehicles with bitcoin, hoping to encourage more day-to- day use of the digital currency.

"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," Cuy Sheffield, head of crypto at Visa, said.

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 needs to be converted into traditional money.

The cryptocurrency wallet will deposit traditional fiat currency in a bank account, to be wired to Visa at the end of the day to settle any transactions, adding cost and complexity for businesses.

Visa's latest step, which will use the ethereum blockchain, strips out the need to convert digital coin into traditional money in order for the transaction to be settled.

Visa said it has partnered with digital asset bank Anchorage and completed the first transaction this month — with Crypto.com sending USDC to Visa's Ethereum address at Anchorage.

Exclusive: Visa moves to allow payment settlements using cryptocurrency
 

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Comments (2)
TL Chan
TL Chan Mar 29, 2021 11:28AM ET
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This usually related to making loopholes for avoiding somethings !
Nison Kay
Nison Kay Mar 29, 2021 5:33AM ET
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why would I use Bitcoin for payment when the worth of the "currency" changes by hundreds if not thousands of dollars in a day.
Stefanos Aggelidis
Stefanos Aggelidis Mar 29, 2021 5:33AM ET
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It id USDC working on ETH blcockchain as ERC20. you will not use BTC. read the news man. Dont answer without knowing what you are reading.
Brent Pye
Brent Pye Mar 29, 2021 5:33AM ET
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why would you want to store US dollars in a bank where you can't control it? You must only make small transactions. Waiting in line at banks when you want to withdraw is annoying, and then they make you file a form of it's over $10k... certain a amounts less than that require managers approval. They are open like 7 hrs a day, 5 days a week, close on holidays.... Ever deposited a large check? It doesn't go in immediately. Some does... then days later some more and eventually after weeks all the funds will settle. This is the stone age compared to crypto. With crypto I can send you any amount, at anytime, for very little fees, instantly. Some blockchains are free. There doesn't have to be a record even if it's billions. True privacy between two people making a transaction.As far as fluctuating prices go... Yeah poor me... I bought Bitcoin all last year under $10k per BTC now it's $57k... Sure wish I'd have kept that money in USD while the government printed and spent $10 trillion.
Nison Kay
Nison Kay Mar 29, 2021 5:33AM ET
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what banks are you using? I have never been to a bank to make any transfer or deposits. last deposit I made was 6 figures and it cleared within days. I do hate how they penalize people for minimum balances though. but with crypto I do believe there are also fees. don't worry they will find a way to sc_rew the middle guy
Nison Kay
Nison Kay Mar 29, 2021 5:33AM ET
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thanks. but I was talking about Bitcoin in general. I don't get the whole crypto thing. I have no use for it and don't see why an avg person will too. but that's just me.
 
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