Financial giant, Visa Inc will allow the use of stablecoin USD Coin (USDC) to be used for payment settlements on its network.
The move by the global financial giant is part of the growing adoption of cryptocurrency by global firms. Just recently, the CEO of Tesla Motors, Elon Musk revealed the firm will start accepting bitcoin for payment in purchase of its cars.
Visa has reportedly launched a pilot program with a payment and crypto platform Crypto.com according to Reuters. Visa also plans to offer the option to more partners later this year.
“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,”
Traditionally, if a customer chooses to use a Crypto.com Visa card to pay for a coffee, the digital currency held in a cryptocurrency wallet needs to be converted into traditional money. “
Reuters reports that “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 any transactions, adding cost and complexity for businesses.”
The move by Visa will eliminate the need to convert cryptocurrency into fiat before transactions are settled.
The firm revealed it has partnered with Anchorage, a digital asset bank and completed the first transaction this month with Crypto.com by sending USDC to Visa’s Ethereum address at the bank.