Visa starts using USD Coin for settlements on Ethereum blockchain

Visa has today informed the world that it will use of the USD Coin cryptocurrency to settle transactions on its payments network, according to Reuters. At trial conducted earlier in the month prove to be successful when Crypto.com sent a USDC transaction to Visa’s Ethereum address at crypto custody service Anchorage.

Traditionally, if a customer chooses to use a Crypto.com Visa card to pay for a purchase, 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 the transactions, adding cost and increasing complexity.

By making use of the Ethereum blockchain, Visa removes the need to convert digital coins into traditional money before transactions can take place and thereby removing pre-existing complexities for businesses.

The USD Coin is a stablecoin, a crypto asset that is pegged to the US Dollar.

Cuy Sheffield, Head of 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,”  Cuy Sheffield, head of crypto at Visa.

Looking at the increasing demand, the majority is expected to come from Latin America, where consumers want access to cryptocurrencies not just as a hedge against inflating national currencies, but as a means of transaction. According to a Visa survey conducted in February, 25% of all credit card users in Latin America would be interested to experiment with cryptocurrencies if payment processors gave them that opportunity.

With this recent development, Visa is definitely making sure to “stay in the middle of it all” as their Chief Executive Officer Al Kelly recently said.

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