Visa runs to allow payment settlement using cryptocurrency

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Visa Inc. said on Monday that it would allow the use of cryptocurrency USD Coin to streamline transactions on its payment network, the latest sign of the increasing acceptance of digital currencies by the mainstream financial industry.

Visa has launched a pilot program with payment and crypto platform Crypto.com and plans to offer options for more partners later this year, it said.

USD Coin (USDC) is a stable coin cryptocurrency whose value is directly measured for the US dollar.

Visa’s move has come in the form of major finance firms including BNY Mellon, BlackRock Inc. and MasterCard Inc., which have adopted a few digital coins that it anticipates will become a regular part of the cryptocurrency investment portfolio.

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Tesla Inc. boss Elon Musk said last week that customers could buy their electric vehicles with bitcoin, an important step for cryptocurrency use in commerce.

“We see increasing demand from consumers around the world, being able to access, hold and use digital currencies and we are seeing demand from our customers to manufacture products that provide access for consumers, “Cuy Sheffield, on Crypto’s chief visa, said.

Traditionally, if a customer uses a Crypto.com Visa card to pay for coffee, the digital currency held in a cryptocurrency wallet needs to be converted into traditional money.

The cryptocurrency wallet will deposit traditional fiat currency into a bank account to be wired for visas at the end of the day to organize any transaction, adding cost and complexity to businesses.

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The latest phase of Visa, which will use the Ethereum blockchain, fulfills the need to convert 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 Visa’s Ethereum address in Anchorage with Crypto.com.