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Encouraging news for the crypto space - Visa reaffirms commitment to add cryptocurrencies to its payment network and create greater access across the globe.
By Nicholas Otieno - Blockchain News
Al Kelly, Visa chairman and CEO, has hinted that the payment giant could add cryptocurrencies to its list of more than 160 currencies as they could enhance its payment network and create greater access.
Kelly was speaking on the firm’s fiscal first-quarter 2021 earnings call where he described cryptocurrencies like Bitcoin as “digital gold” that are “not used as a form of payment in a significant way at this point.”
He mentioned that the card giant is positioned to help make cryptocurrencies become more useful, safe, and applicable for payments.
Kelly said that Visa could make this possible by making use of its trusted brand, partnership approach, and global presence.
He revealed a specific strategy that the company intends to adopt. He stated:
“Our strategy here is to work with wallets and exchanges to enable users to purchase these currencies using their Visa credentials or to cash out onto our Visa credential to make a fiat purchase at any of the 70 million merchants where Visa is accepted globally.”
The payment CEO classifies blockchain assets into two categories: cryptocurrencies such as Bitcoin that serve as a store of value and stablecoins, which are directly backed by existing fiat currencies, could be utilized for global commerce, just like any other fiat currency.
Of late, Visa is aggressively pursuing cryptocurrency payments, including investing in Zap, a crypto payments startup, and forming partnerships to enable crypto debit cards. Kelly informed investors that the company would be poised to take advantage of cryptocurrencies that emerge as a dominant force in payments because of relationships that have already existed whereby over 35 of major digital currency platforms and wallets providers like BitPanda, Fold, BlockFi, and Crypto.com, among others, have chosen to partner with Visa to issue crypto payments.
Kelly said:
“These wallet relationships represent the potential for more than 50 million Visa credentials.”
He stated that digital currency has become a recognized means of exchange, and there is no reason why Visa cannot add it to its network, which today already supports over 160 currencies.
While several financial institutions still remain sceptical about Bitcoin and cryptocurrencies at large and instead focus on its underlying technology, blockchain, Visa corporation has embraced both blockchain and digital currency. The company believes that virtual currencies provide an exciting avenue for it to continue doing what it does best. Visa operates in 230 nations and territories and wants to win as many transactions as it can.
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By ANDREW THURMAN - COINTELEGRAPH
The payments giant is bullish on stablecoins but may be overlooking the potential of DeFi
During the Visa Q1 earnings call on Thursday, chairman and CEO Al Kelly devoted a portion of his comments to reaffirming the financial giant’s commitment to crypto payments and onramps, as well as explaining “how Visa thinks about crypto in general and our approach.”
The financial services firm with over $72 billion in assets as of 2019 has been aggressively pursuing crypto payments as of late, including by way of partnerships enabling crypto debit cards, and investing Zap, a crypto payments startup. Additionally, earlier this month Visa was forced to abandon a $5.3 billion acquisition of payments platform Plaid on antitrust grounds.
Thursday’s comments make it clear that Visa still has long-term plans in the sector, and that the company believes itself to be in an excellent position to pursue them. According to a transcript of the call, Kelly said “we believe that we are uniquely positioned to help make cryptocurrencies more safe, useful and applicable for payments,” by virtue of Visa’s size, integrations, and brand recognition.
Fans of Ethereum and the explosive growth of DeFi might be taken aback by the company’s somewhat antiquated view on smart contract platforms, however.
Kelly said that Visa groups blockchain assets into two categories: “cryptocurrencies that represent new assets such as Bitcoin” and serve as a store-of-value, and “stable coins that are directly backed by existing fiat currencies” which are more routinely used for payments.
For store-of-value coins, Kelly said that Visa will angle to serve as a fiat on-ramp:
“Our strategy here is to work with wallets and exchanges to enable users to purchase these currencies using their Visa credentials or to cash out onto our Visa credential to make a fiat purchase at any of the 70 million merchants where Visa is accepted globally.”
When it comes to stablecoins, however, Visa is taking a much more bullish stance, calling the cryptocurrencies “an emerging payments innovation that could have the potential to be used for global commerce, much like any other fiat currency,” and said that public blockchains can be thought of as payment rails similar to RPT or ACH networks.
The company also told investors that Visa would be poised to take advantage of any crypto that emerges as a dominant force in payments due to relationships with wallet providers such as “Crypto.com, [BlockFi], Fold and BitPanda,” as well as a possible direct integration with their 160-currency payments network.
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