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The payment giant, Visa, has approved a cryptocurrency payment directly on Ethereum's blockchain as part of a new service it plans to introduce to its financial partners later this year.
The move, the latest sign of increased adoption of digital currencies by the old-guard financial industry, bumped the price of bitcoin and ether roughly 5% each. CRYPTO.COM provides Visa cards backed for “crypto”, which allow customers to spend the crypto.com they hold in their wallets.Per a press release shared with CoinDesk, Crypto.com sent a USDC stablecoin transaction to an account at Anchorage custody under Visa’s name. The pilot may be the first sign that crypto-native payment methods are making their way into mainstream acceptance, as it marks the first time Visa has accepted a cryptocurrency payment in lieu of cash. A press release from Visa quoted Chief Product Officer Jack Forestell as saying that crypto-native fintech firms need partners who understand both their business and the intricacies of digital currency form factors.
Today's announcement shows that we are a major player in the stablecoin and cryptocurrency space, and it's a natural extension of what we do every day, securely facilitating payments in all foreign currencies around the world.”
Usually, Crypto.com has to sell cryptocurrencies for to cover its obligations to Visa in cash, but this new program will allow the company to pay in USDC going forward. The pilot could be a bellwether for mainstream acceptance of crypto-native payment methods, as it marks the first time Visa has accepted a cryptocurrency payment in lieu of cash for its services.
“Crypto-native fintechs want partners who understand their business and the complexities of digital currency form factors,” Visa Chief Product Officer Jack Forestell said in the press release. ??
Visa goes in on bitcoin, crypto
After further testing and conversations with clients, partners, and groups from the regulatory community, Visa expects to launch this feature in other channels in the coming year. The news The Crypto.com Company is a good example; other crypto companies like CoinFi, Fold, Bitpanda, and others have reward Visa cards that offer bitcoin rewards. Bitcoin price moved in response to the news.
It is a great feeling to receive and share good news with others. In addition to Crypto.com, crypto companies BlockFi, Fold, Bitpanda and others have Visa cards with bitcoin-back rewards. One upstart called Moon allows its users to buy prepaid digital cards with Bitcoin’s Lightning network to use at any Visa-accepting online merchant.
Visa’s USDC settlement with Crypto.com comes almost two months after news surfaced that the payments company is building out APIs for banks and financial institutions to buy and sell cryptocurrencies for their clients using Visa’s network and Anchorage’s custodial services.
US Dollar Coin is the second largest crypto-currency, valued at $11 billion, and may be used to pay for obligations to Visa in the future. A pilot may portend the acceptance of cryptocurrency payment methods by mainstream companies, since it marks the first time Visa has taken cryptocurrency payment in substitution for cash.
In the press release, Jack Forestell, chief product officer at Visa, stated that crypto-native fintech companies look for partners who understand their business and the complexities of digital currency form factors.”
“As the largest credit card company in the world, Visa is the one pushing cryptocurrency the most aggressively.The payment network’s fast-track program has geared up dozens of crypto companies with resources and Visa cards.
The Crypto.com Company is a good example; other crypto companies like CoinFi, Fold, Bitpanda, and others have reward Visa cards that offer bitcoin rewards. Updates with price of bitcoin moving on the news.
