“Visa said on Monday it will allow the use of the cryptocurrency USD Coin to settle transactions on its payment network,” CNBC writes.
Why It Matters: As we look for signs of whether crypto is going in the long term, Visa’s new move offers another sign these digital currencies might just have a place in mainstream finance.
- For those wondering what USD Coin is, it’s a “stablecoin cryptocurrency” that has a value directly tracking the U.S. dollar.
- If a consumer makes a purchase using a Crypto.com Visa card, Visa will use the ethereum blockchain to strip out the step of converting the digital currency back to the traditional fiat one.
Trendsetting 101: Other major finance firms have gotten involved in crypto, which has been a major mover in Bitcoin’s meteoric rise over the last year. Some include BNY Mellon, BlackRock and Mastercard.
- Elon Musk said customers can buy Teslas with Bitcoin as well.
Looking Ahead: “Visa has launched the pilot program with payment and crypto platform Crypto.com and plans to offer the option to more partners later this year.”
This is actually a really great sign for cryptocurrencies in general because it reduces the complexity of payments settlement on the back end. Visa is showing they are more interested in integrating into the crypto environment, even if only with stablecoins right now.
There is still outstanding complexity around people holding cryptocurrencies and trying to settle in U.S. Dollars, but at least some of the blockchain rails are getting integrated into the mainstream.
At the very least, it’s an amazing sign for Ether (ETH). If Visa continues down this path, it would mean more USDC settlements on the Ethereum network, which would increase the value of Ether.