Home
News
- Visa’s digital currency plans take off with a new form of payments’ department formed at the company
- Its digital plans rest on five pillars out of which global crypto acceptance and smooth sailing of CBDCs is of prime importance
- Multiple avenues to open up with stablecoins and B2B ventures where Visa is poised to offer a new market and grow
With a potential market capitalization this year of $500.14 billion, Visa’s entry into the digital currency space was inevitable. The company agreed that digital currencies have a lot of potential collectively and they need to be explored even further before they enter the segment. Moreover, the firm believes that CBDCs and stablecoins that are backed by fiat currency have a greater potential of being accepted by its consumers. Lastly, there are several B2B market makers for Visa who may provide additional revenue for the organization.
Opportunities galore for the payment major
The volatility of cryptocurrencies like Bitcoin and Ethereum did not deter the firm from exploring a different kind of an opportunity. Nikola Plecas, who heads the company’s new payment flows department, stated that Visa’s products have been able to generate and terminate new forms of payments that include cryptocurrencies. The department head further mentioned that the new form of currency rested on five crucial pillars for Visa.
Firstly, Visa will play a pivotal role for acceptance of cryptocurrencies across the globe by working with digital wallets and exchanges that deal in them. Secondly, users should experience a smooth ride from cryptocurrency to fiat currency and use the same at more than 70 million merchant endpoints. Liquidating cryptocurrency investments will not be beneficial until the investor is able to convert it into a domestic currency.
The third pillar rests on the potential of developing a new application interface for users that enable them to add cryptocurrencies without any hindrance. The fourth pillar tests consumers’ trust on stablecoins as they are apprehensive of their investments.
Fiat currency backed coins will help consumers remain in their ecosystem and yet explore a different opportunity. Lastly, Central Bank Digital Programs will boost crypto acceptance and help Visa multiply its user base. It will help reach the underbanked effortlessly through public-private enterprises.
B2B services and the growth of stablecoins
Visa has time and again stated that stablecoins will offer a better prospect for users to understand how the blockchain networks function. It is the perfect tool to better understand cryptocurrencies and their complementing infrastructure. B2B is yet another segment that Visa believes has massive potential in the growth of digital currencies.
With a background in journalism, Ritika Sharma has worked with many reputed media firms focusing on general news such as politics and crime. She joined The Coin Republic as a reporter for crypto, and found a great passion for cryptocurrency, Web3, NFTs and other digital assets. She spends a lot of time researching and delving deeper into these concepts around the clock, and is a strong advocate for women in STEM.
