Cryptocurrencies Gain as Visa Tests Crypto Settlement
Bitcoin and other cryptocurrencies went up after an announcement by Visa saying that it will use a stablecoin backed by the U.S. dollar to accommodate transactions. Visa’s move comes as blockchain technology gains more ground in financial institution acceptance.
After the news, Bitcoin rose above $58,000 and gained as much as 6.3% during the European session. Other cryptocurrencies also rose.
Visa, the world-known payment services provider, has been running a pilot program and using USD coins to settle transactions over Ethereum, partnering with Anchorage, a digital-asset bank, and the Crypto.com platform. Visa plans to offer the service to more partners at a later stage in 2021.
The payment giant and other traditional financial companies have started adopting blockchain technology and utilizing cryptocurrencies more than a decade after Bitcoin was created and despite the skeptics. Some market experts maintain that Bitcoin is mainly an instrument for speculation and it could not replace alternative stores of value.
Visa’s decision captures its willingness to serve fintech companies. The company’s chief product officer, Jack Forestell said about the firm’s move: “Crypto-native fintechs want partners who understand their business and the complexities of digital currency,” and continued, “The announcement today marks a major milestone in our ability to address the needs of fintechs.”
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