Visa has started testing stablecoin settlements on its platform and is building a “muscle memory” for settlements to allow for the exchange of crypto assets and fiat currencies. Visa aims to integrate blockchain technology into its platform to move funds faster and is experimenting with accepting settlement payments. Despite the recent failures in the crypto industry and a bear market, Visa remains committed to advancing in the digital currency space.
Visa has entered the cryptocurrency space by testing stablecoin settlements on its platform. The information was confirmed by Visa’s head of the crypto division, Cuy Sheffield, who stated that the company is currently building a “muscle memory” for settlements that would allow customers to exchange their crypto assets and fiat currencies. Visa is currently testing large-value settlement payments.
That’s been one of the areas where we want to build muscle memory. The same way that we can convert between dollars in euros on a cross-border transaction, we should be able to convert between digital tokenized dollars and traditional dollars,” said Sheffield.
Visa aims to enter the world of cryptocurrency and has been looking into ways to integrate blockchain technology into its platform for faster fund transfers. Currently, settlements are made through the SWIFT system, a non-profit cooperative established by European bankers for secure and standardized transactions between members. However, since limitations in the network restrict the frequency of money transfers, Visa decided to experiment and test the acceptance of settlement payments.
Visa has been cautiously exploring the cryptocurrency sector in recent years. Despite some high-profile failures and a prolonged bear market in the industry, the company remains committed to advancing in the digital currency space.
At a recent annual shareholder meeting, Visa CEO Al Kelly addressed the topic of cryptocurrency. He stated that the company has not experienced any credit losses related to the failures in the industry and that their investments in the crypto space have been minimal as they seek to grow their presence in the payments ecosystem. Kelly indicated that Visa’s role in the crypto world is set to expand.
“It’s very early days, but we continue to believe that stablecoins and central bank digital currencies have the potential to play a meaningful role in the payments space, and we have a number of initiatives underway,” Kelly said.
To start experimenting within the world of cryptocurrency, or to just earn some other rewards, consider applying for one of Visa’s rewards cards below.
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