American multinational company, Visa has announced it would accepting the use of cryptocurrency to settle transactions on its platform.
It said it would be making use of the USD coin for transactions on its payment network.
This has made it the first major payment platform to transact in the form of currency.
According to reports, payment and world crypto platform, crypto.com, which Visa partnered with launched the pilot programme.
Visa said that it is planning on offering the update to more of its partners.
According to the executive vice president and chief product officer, Visa, Jack Forestell, the announcement is a major milestone for the company.
“The announcement today marks a major milestone in our ability to address the needs of fintech managing their business in a stablecoin or cryptocurrency, and it’s really an extension of what we do every day, securely facilitating payments in all different currencies all across the world.”
Also commenting on the new update in their partnership, Kris Marszalek, Co-founder and CEO of Crypto.com said: “We’ve seen record-breaking growth in our business and the broader crypto ecosystem over the last year.
To continue accelerating the world’s transition to cryptocurrency, we need partners who understand the opportunity and the tools that will help us get to market faster and more efficiently.
Having been a Visa partner for several years, we’re excited to deepen that relationship through our global agreement and to pioneer an exciting world-first in stable coin payments.”
However, the USD coin is a stable cryptocurrency that is backed by U.S. dollars.
How it works
Reuters reported that for users to use the platform, the currency would be transformed into traditional fiat currency; in which it would be paid from the cryptocurrency wallet into a bank account.
Then it would be wired to Visa to settle transactions on the platform.
Although, it would add cost and make the process complicated and complex.
However, with its latest update to the platform, they don’t have to go through so many processes.
They don’t have to convert to fiat currency before making a payment; rather they would be able to pay directly through cryptocurrency on the platform.
This would be made possible because it would use the Etherum blockchain on its system.
Payment platforms embrace cryptocurrency all over the world
Asides from Visa, some other American major financial institutions have embraced cryptocurrency into their system.
Plaforms likeMastercard Inc, and BLackrock. Also, payment companies are now being built in Africa for transactions in cryptocurrency.
Platforms like Paychant supports about 10 Africa companies transacting on their platform with Bitcoin.
Just recently, one of the biggest multinational companies in the U.S, announced to be accepting cryptocurrency as payments for its product.
This took place on Wednesday, the 24th of March. Elon Musk CEO of Tesla said its car can now be bought with cryptocurrency.
Not just any crypto but the most popular of all cryptocurrencies, Bitcoin.
However, analysts are saying that the move taken by both companies is a basis of the general acceptance of cryptocurrency not just in the digital space but by the financial industry.
About Visa Inc
Visa is a multinational payment technology service company that aims at allowing the citizens, businesses, banks and government to use digital currency.
Also, the company plans on helping to lives and economy around the world.
Visa also said that it would be bringing about a positive change by using its philanthropy, know-how and products to bring about financial inclusion.
Its step to include cryptocurrency in its system is a major one to achieving financial inclusion.