The gold standard in the world of payments, Visa, no longer considers itself to be a competitor of cryptocurrencies and is ready to support Bitcoin and other cryptocurrencies. This is reflected in an article on the corporate blog.
Visa is part of the global fiat financial system. Cryptocurrencies are a decentralized, uncontrolled alternative to centralized fiat money. But any of the cryptocurrencies is far below Visa as for speed processing of transactions. Competition for scalability is the most important factor in the crypto market. Perhaps fearing that sooner or later cryptocurrencies will be able to solve the scalability issue, Visa is changing the relationship of confrontation to a relationship of cooperation. This is not Visa’s first attempt to enter the crypto market. Last year, Visa and MasterCard were the largest members of the new Libra Association, an association supporting Facebook’s Libra cryptocurrency. But both payment giants left Association after the US Senate did not support the Libra launch.
As the blog post states, Visa remains positive about cryptocurrencies despite a failed attempt with Libra. Moreover, some cryptocurrencies and crypto-exchanges are already cooperating with Visa, dozens of joint projects have been launched to buy cryptocurrencies from Visa bank cards. And there are at least 25 digital wallets linked to Visa cards. This makes it possible to pay with cryptocurrency wherever Visa cards are accepted.
Visa now says it sees cryptocurrencies as a technological opportunity to deliver value to people, businesses, and economies everywhere in the world, regardless of currency, channel, or form factor. Integration with cryptocurrencies will enable Visa to further expand its network to support merchants. Visa notes that it has long partnered with regulated platforms Coinbase and Fold, thus providing a bridge between cryptocurrencies and 61 million merchants. Entering the cryptocurrency market, Visa hopes that its 60 years of experience can be used to create the perfect payment system that will serve everyone for decades to come.
The failure with Libra forced Visa’s management to think about exploring the crypto market on its own. The reason is that not everyone is happy about the high fees of the leading payment system. Cryptocurrencies’ payments are much cheaper, that’s why merchants are interested in crypto. But Visa does not want to lose the market and its income and ready to compete.
Visa’s announcement comes amid rising Bitcoin, which is approaching the $10K resistance level.