Visa said monday that it will allow the use of cryptocurrency USD coin to organize transactions on its payment networks, the latest sign of growing acceptance of digital currencies by the mainstream financial industry.
The company told Reuters that it had launched the pilot program with Crypto.com the payment and crypto platform and plans to offer options for more partners later this year.
Bitcoin’s most popular crypto coin jumped to a one-week high on the news, rising 4.5 percent to $58,300 (approximately Rs 42.4 million) and headed for a record-high above $61,000 (approximately Rs 44.4 million). Earlier this month.
Visa later confirmed the news in a statement.
USD Coin (USDC) is a stable currency cryptocurrency whose value is directly assessed in US dollars.
Visa’s move comes as finance firms, including BNY Mellon, BlackRock and MasterCard take steps to make more use of cryptocurrency investments and payment purposes.
Boss Elon Musk, a leading proponent of Tesla cryptocurrency, said last week that customers can buy their electric vehicles with Bitcoin, hoping to encourage greater day use of the digital currency.
“We see growing demand from consumers worldwide, able to access, hold and use digital currencies and we are seeing demand from our customers to build products that provide access for consumers,” Sheffield Cuy, head of crypto, said.
Traditionally, if a customer uses a visa card Crypto.com to pay for coffee, the digital currency placed in a cryptocurrency wallet needs to be converted into traditional money.
Cryptocurrency Wallet will deposit traditional fiat currency into a bank account to be wired for a visa at the end of the day to organize any transaction, adding cost and complexity to businesses.
The latest phase of Visa, which will use the ethereum blockchain, needs to turn digital coins into traditional money to settle transactions.
Visa said it has partnered with digital asset bank Anchorage and completed the first transaction in this month – sending usdc to the Ethereum address of the visa in Anchorage with Crypto.com.