Visa, one of the largest processors in the world payments announced on Wednesday (2) that will integrate its payment system with the USDC a cryptocurrency with a value pegged to the dollar (stablecoin). With the recent partnership, stablecoin will have access to a payment system with more than 60 million merchants, the information is from Forbes.
With a total capitalization of around $ 2.9 billion, the US Dollar Coin (USDC) is one of the largest cryptocurrency stablecoins and is a direct competitor to Tether (USDT). Created by Circle on blockchain Ethereum, the USDC aims to facilitate large-scale dollar transactions without losing network security and reliability.
According to the information, Visa will not be the custodian of any USDC token, having no direct involvement with the asset, but will offer its structure for international digital currency transactions.
Simply put, with the new partnership, USDC will help Visa choose credit card distributors to integrate stablecoin software into its platforms. This will allow international payments using cryptocurrency to be made by Visa customers.
Amounts sent in USDC can also be converted into the fiat currencies of each nation and used on the debit card. In theory, this offers the possibility of international transactions between businesses with much more ease and less friction, as the stablecoins promise. But of course, we have to wait to see if there will be an interest in using the asset for these activities.
The advantage will not only be for the cryptocurrency ecosystem or for merchants who are part of the network, but also for Visa, which can (in theory) lower operating costs in international transactions of different scales.
“Visa estimates that about $ 120 trillion in payments are made annually using checks and wire transfers, each can cost up to $ 50, regardless of the size of the transaction. As the USDC uses the Ehtereum blockchain and transactions can close in less than 20 seconds and for almost free, Visa believes that a good deal of merchants can use this instant payment system less. ”, Forbes pointed out.
The partnership will also allow partners to issue cards specializing in the use of USDC, further facilitating the adoption of cryptocurrency.
Visa continues to invest in solutions linked to the crypto marketplace
With its recent investments, Visa has shown that it is attuned to a possible evolution of money, trying to anticipate a digitalization of fiduciary currency and use the advantages of this system for its customers.
According to Cuy Sheffield, head of Visa crypto, they imagine that the credit card network is also part of the cryptocurrency ecosystem as a whole since the company is a "network of networks".
“We think of Visa as a network of networks. Blockchain and stablecoin networks, such as USDC, are just additional networks. So we think there is a significant value that Visa can provide to our customers, allowing them to access network merchants. ”
The partnership is not Visa's only involvement with the crypto market. Recently the company also invested $ 40 million in a cryptocurrency startup, in addition to having applied for a patent for a solution that will operate in blockchain mining.
Today Visa also announced the launch of a card that offers bitcoin cashback.
These are clear signs that the card banner sees blockchain as something important for the monetary future.
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