Crypto: Visa moves to allow payment settlements using U.S. dollar coin (USDC)




Crypto.com: Visa Crypto Card

Visa Inc announced on Monday it will allow the use of the cryptocurrency USD Coin to settle transactions on its payment network, This moves means growing acceptance of digital currencies by the mainstream financial industry.
The company declared 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. Coinbase also did the same thing earlier in 2019 by announcing the launching of a crypto Visa debit card for its customers.

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

With this great news, it will be a relief for Nigerian citizens and some other countries facing a crypto ban in their countries. You will recall that the Central Bank of Nigeria recently announced banning all banks institute from transacting in cryptocurrencies which put all the crypto users in the country into dilemma. and you will also recall that  Enat DigitalBiz stated some benefit of the crypto ban for stablecoins 

One of the cryptos that Visa will be starting with is USD Coin (USDC), this is a stablecoin cryptocurrency whose value is pegged directly to the U.S. dollar.

According to Cuy Sheffied, head of the crypto at Visa said: "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".
 
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.

But now the Visa latest step will use the ethereum blockchain, which strips out the need to convert digital coins 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.


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