As one of the American financial giants, Visa has been following PayPal frequently in the near future, entering the cryptocurrency field. It is also one of the early participating members of Libra. Now Libra has been renamed Diem and will issue stable coins. Members also began to have their own small nine, embracing the blockchain, and laying out for the future.
After the recent frequent actions, I believe Visa will further expand its wings and will continue to compete with other financial giants for the big cake of cryptocurrency. In the United States, there may be a situation where PayPal, Visa, and Diem compete among the three, and it will surely become a topic of interest for a period of time.
Next, we will sort out Visa’s recent actions and see what exactly it wants to do?
1. Visa previously applied for a patent for coining (issuing) traditional legal tender on the blockchain, which applies to digital dollars and other digital currencies issued by central banks, such as British pounds, Japanese yen and euros. This patent played a decisive role in Libra’s original vision.
2. Visa announced that it will connect its global network covering 60 million merchants with USDC. Although Visa itself will not host digital currency, for card issuers that choose Visa credit cards, the partnership between Visa and Circle will prompt the latter to integrate USDC software into the card issuer’s platform and provide a proxy for sending and receiving USDC. Provide support for currency transactions.
This plan may prompt Visa to issue a credit card that supports corporate customers to use USDC to receive and pay, so that every company can use digital currency conveniently, and it may even launch a digital currency credit card for personal use in the future.
3. Visa has launched an exclusive cryptocurrency business “Fast Track” program, which can help companies obtain certificates for issuing Visa credit cards. It currently includes 25 cryptocurrency wallet service providers, including two cryptocurrencies, Fold and Cred. Wallet, although Cred has filed for bankruptcy, early participation has provided more possibilities for cooperation. As early as February 2020, Coinbase became the first cryptocurrency company to be granted the master membership status by Visa, which means Coinbase Can issue encrypted credit cards to others.
4. On November 30, Velo Lab announced that it has reached a cooperation with Lightnet Group and Visa Global to jointly develop Asian payment solutions. After the cooperation takes effect, Velo Labs, Lightnet Group and Visa Global will cooperate to develop payment solutions aimed at solving the problem of difficult access to services in the Asian small, medium and micro enterprise (MSME) loan market. According to estimates by the International Finance Corporation (IFC), it is difficult to solve the problem of US$5.2 trillion in loans to small, medium and micro enterprises worldwide each year, and more than half of the financing gap exists in the Asia-Pacific region.
A series of operations by the payment giant Visa let us see that it is embracing the blockchain. The card issued by Visa and Circle this time will also be the first corporate card that allows companies to use USDC stablecoins, which will greatly increase USDC’s vs. Circle The utility of corporate customers.
In the stable currency market, digital currencies such as USDT, USDC, BUSD, DAI have become the main exchange tools in the cryptocurrency field in the world today, and this time Visa’s cooperation with major cryptocurrency companies will facilitate people to participate in encryption conveniently For the purchase or use of currency, long-term participants have also obtained a better way of monetizing, especially for companies, which will no longer cause high fees due to different currency types and cross-border issues.
I believe that Visa’s actions are much more than these. Next, there may be a greater strategic layout waiting for us. The embrace of giants such as Visa will make people believe in the blockchain more and more people will buy cryptocurrencies. Cryptocurrency itself will produce great benefits.
