The move by Visa comes against the backdrop of unprecedented
investor demand for cryptocurrency services and the company's latest offering
is geared towards financial institutions eager to attract or retain customers
with a crypto offering, retailers looking to delve into non-fungible tokens
(NFTs), or central banks exploring digital currencies.
Visa's services include educating institutions about
cryptocurrencies, allowing clients to use the payment processor's network for
digital offerings, and helping manage backend operations.
"We came to Visa to learn more about crypto and
stablecoins and the use cases that are most relevant for our retail and
commercial business lines," said Uma Wilson, executive vice president at
UMB Bank, a regional US lender.
A new global study by Visa showed nearly 40 percent of
crypto owners surveyed would be likely or very likely to switch their primary
bank to one that offers crypto-related products in the next 12 months.
Visa currently uses its network to allow buying, selling,
and custody of digital currency. It also offers a credit card that lets users
earn Bitcoin on purchases and also allows the use of USD Coin, a stablecoin
cryptocurrency whose value is pegged directly to the US dollar, to settle
transactions on its payment network.
However, for cryptocurrencies such as Bitcoin to be used as
a medium of exchange, price stability is needed, Visa's Chief Financial Officer
Vasant Prabhu told Reuters.
"If the price is going to fluctuate from $60,000 to
$50,000 in a few hours, it's a very
difficult thing for a merchant to accept (bitcoin) as a currency," Prabhu
said.
"I don't know if cryptocurrencies like Bitcoin will
ever be a medium of exchange. Stablecoins will," he said, adding that Visa
would facilitate such transactions when the time was right. © Reuters
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