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One month before the bankruptcy of ftx, visa planned a partnership with the stock market to provide a crypto debit card in 40 countries.
The company has also published its 2022 Annual Report, in which it has written about its complementary and competitive cryptocurrency relationship.
The CEO of the world’s largest credit card company told shareholders on Tuesday that stablecoins and central bank digital currencies (CBDCs) will play a “meaningful role” in the payments space going forward.
As explained by CEO Alfred Kelly during a conference call, Visa already has “multiple initiatives” underway in the blockchain space, and has invested many crypto funds and companies already.
Encrypted Outlook from Visa.
We continue to believe that central bank stablecoins and digital currencies have the potential to play a significant role in the payments space," said Kelly. This solves for the price instability problem that critics – including central banks – claim prevents Bitcoin from being a legitimate currency.
It solves the problem of price volatility that critics – including central banks – argue that bitcoin is not a legitimate currency.
Tether (usdt), which is the largest stablecoin per market capitalization, has a higher volume of day-to-day transactions than any other crypto. Federal Reserve vice chair Lael Brainard has shown support for launching a CBDC in the United States by providing a “safe central bank liability in the digital financial ecosystem.”
Last year, Visa formed a partnership with ConsenSys to onramp CBDCs to existing payment networks.
In addition, CBDC is a currency issued by the government in digital form, built on blockchain rails.
Federal Reserve Vice President Lael Brainard has demonstrated her support for the launch of a CBDC in the US by offering "safe central bank responsibility in the digital financial ecosystem." Last year, Visa partnered with ConsenSys to expand CBDCs to current payment channels.”
“Technology and innovation are shifting consumer habits and driving growth opportunities in ecommerce, mobile payments, blockchain technology and digital currencies,” the company stated, adding that crypto payment platforms “can be both a partner and a competitor to Visa.”
Reputational Harm
Cryptocurrencies pose not only technological threats and opportunities for Visa, but reputational ones too. As part of his report, visa stated that it "develops or participates in other payment systems or products," which might possibly detract from its role, some include "payments through cash payment initiatives". in a section entitled "competition," endorsement named "digital wallet suppliers" and alternative payment providers" among them, The latter includes "cryptocurrency platforms", while these platforms are currently primarily focused on electronic commerce and mobile payments, They expect them to "expand their physical point-of-sale offerings". technology and innovation are changing consumer habits and driving opportunities for growth in e-commerce, mobile payments, blockchain technology and digital currencies,' according to the company, adding that crypto payment platforms "can be a partner and a visa competitor at the same time." Damage to reputation Cryptocurrencies pose not only technology threats and visa opportunities, It's not just about reputation.
A month before FTX went bankrupt, Visa planned a partnership with the exchange to provide a crypto debit card in 40 countries. The program was terminated shortly after the collapse.
