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Visa (NYSE: V) announced Monday it will allow users to settle transactions with the USD Coin (USDC) cryptocurrency on its payment network, underscoring the increasing mainstream acceptance of digital currencies.
Fundamental analysis: Visa embraces crypto
Visa has rolled out the pilot program in collaboration with crypto and payment platform Crypro.com and said it plans to offer the option to other partners too later in 2021. The USD Coin (USDC) is a stablecoin whose value is directly linked to the U.S. dollar.
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The move comes after a number of major companies including BNY Mellon, Tesla, and Mastercard, among others, have announced support or invested in cryptocurrencies. Just last week, electric vehicle giant Tesla announced that its customers are now able to buy Tesla cars with Bitcoin.
“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,” said Cuy Sheffield, head of crypto at Visa.
Before, a customer who wanted to buy something using a Crypto.com Visa card was required to convert the digital currency into fiat money. The digital wallet would then deposit fiat money to a bank account, to be wired to Visa.
Visa’s latest move, which utilizes the Ethereum blockchain, does not require digital currencies to be converted into traditional money in order to make the transaction.
Technical analysis: Bitcoin (BTC), Ethereum (ETH), and Crypto.com (CRO) price analysis
Visa news immediately sent the entire cryptocurrency market higher. Bitcoin price gained over 4% to trade above the $58,000 mark as traders buying Bitcoin hope for another trip above $60,000. On the downside, the ascending trend line near $55,500 is providing support.
Ethereum price reacted in a similar manner to advance over 5% as it approached $1,800. A close near the daily highs would be bullish and offer a platform for a further push towards $2,000. Crypto investors looking to buy Ethereum at a cheaper price, will have to wait for a deeper pallack below $1,500.
Finally, the Crypto.com (CRO) price has advanced the most as it trades about 10% higher on the day. The price action is trading within a triangle with a move above the $0.25 handle marking a breakout.
Visa said on Monday that users are now able to settle transactions using the USD Coin (USDC) on its payment network to send the entire cryptocurrency market higher.