Payment giant Visa has expanded its exposure to bitcoin and cryptocurrencies. According to the earnings call for the second quarter of 2021, the company has a long roadmap and many plans to integrate these assets into its payments network.
Al Kelly, Chairman and CEO of Visa, spoke about the “opportunities” the company offers and wants to explore them with BTC and digital assets. Kelly said he viewed this cryptocurrency as “digital gold” because people “hang on” to it.
In the crypto industry, Visa will focus on 5 areas. The first is to allow consumers to buy Bitcoin and other cryptocurrencies. The executive said Visa is working with exchange platforms and wallets to enable this feature. Kelly added:
I would say this is a space that we lean into very, very deeply, and I think we are very well positioned.
The payment giant later works to enable customers to use a crypto payout service. This allows the Visa network to convert funds to BTC or other cryptocurrencies into fiat. The converted funds are available for purchases from the 70 million Visa merchants. Kelly believes this will bring “immediate benefits” to digital currency. He added:
We have over 35 digital currency platforms and wallets that have chosen to work with us. Coinbase, Crypto.com, BlockFi, Fold, Bitpanda are just a few examples. This is certainly a second great opportunity.
Bitcoin with broader use cases in addition to Visa
On the other hand, the company would like to offer its business partners and institutions a “crypto option”. That’s why Visa created APIs.
This enabled the institutions to offer a buy, trade and custody function backed by Anchorage, a US-based digital asset bank. Kelly later referred to her fourth opportunity, the deal:
We have updated our infrastructure so that a financial institution can process this in a digital currency with stablecoin, starting with USDC. (…) Therefore, we can now support digital currencies as an additional accounting currency in our network.
To that end, Anchorage will also be a key component. The Digital Asset Bank will help Visa integrate the mechanism to process transactions with stable coins such as USD Coin (USDC). Kelly said the company will partner with banks.
In this way, they will incorporate Central Bank (CBDC) digital currencies and help secure them. Commenting on Bitcoin’s role in Visa’s plans, Vice-Chairman and CFO Vasan Prabhu said:
The other use case that has a lot of potential is that crypto-related transactions are gaining traction and, as you know, we enable a large number of transactions, a use case that is particularly useful in either stablecoin or bitcoin scenarios that are cross-border.
BTC is trading at $ 54,650.71 with a sideways movement on the daily chart. On the weekly and monthly charts, BTC shows minor losses at 2.8% and 1.9%, respectively.
BTC is moving sideways on the 24-hour chart. Source: BTCUSD Tradingview
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