One of the major financial solution providers, Visa is planning to allow its consumers to be able to process fiat to cryptocurrency transactions. Visa has announced that it is currently carrying out a pilot that would allow the users to settle transactions that they made on fiat through the Ethereum (ETH) blockchain.
The announcement was made by the major financial service provided on Monday, March 29, 2021. Visa has confirmed that in order to carry out the pilot, it will be partnering with an exchange platform. The company has confirmed that it will be partnering with Crypto.com, which is also a major card issuer in the crypto-verse.
Visa has predicted that it is planning to compete the piloting for the program and launch the service to the consumers by the end of the year 2021. Once launched, the platform will be used for cryptocurrency settlements and the users will be allowed to convert their fiat into cryptocurrencies.
Once the program has been deployed, the users will be able to exchange USDC Coin (USDC) using the payment network supported by credit cards. This mechanism will be used in order to clear transactions that are made through fiat currency.
Visa has revealed that at present, the partners are required to use wire transfer in order to send fiat, which is the standard settlement process. However, the standard process would end up causing a lot of complexities and fees for businesses whose foundation is based on digital currencies.
During the pilot, Crypto.com will take the responsibility of sending USDC to the Ethereum (ETH) address that belongs to Visa. This process will be used to settle transactions under the Visa card program that has been designed by Crypto.com exchange. Visa has also confirmed that in order to execute this process, the treasury of Visa will be linked with Anchorage, which is a digital asset platform.
Jack Forestell, who is the chief product officer (CPO) at Visa has talked about the announcement of the pilot. Forestell stated that today’s announcement has marked a new milestone in the development of Visa as a financial service provider.
It goes onto show that Visa recognizes the needs of its clients and stakeholders, and will continue making providing them with advanced fintech solutions. It would further allow the fintech firms and businesses to benefit from the solutions that Visa will be able to offer users in the cryptocurrency or stablecoin sector.
Visa has announced after carrying out the pilot, it will focus on making the service available for Fintech companies as well as neobanks. The company has announced that it will be focusing mainly on providing solutions around major cryptocurrencies such as Ether (ETH), Bitcoin (BTC), and USDC.