Visa has announced that it will start accepting payments in the crypto USD coin directly at end of the March. USD coin is a stablecoin linked to the U.S. dollar with 1 USD Coin pegged to $1.
The company’s crypto.com debit cards once required conversion to a conventional currency from digital currencies that Visa accepts. The company says it aims to support new central digital bank currencies as they become available in the upcoming time.
Visa had partnered on a crypto-based rewards debit card with crypto.com for many years. It required crypto.com to transform the digital currency transacted into currencies like the U.S. dollar. It was a complex, expensive and time-consuming process. So, the company decided to upgrade its infrastructure in 2019.
After 2 years of doing so, the company decided to initiate a new program using the USD Coin, a stablecoin. It means that while the coin is powered by Ethereum, it fixes its market worth to the U.S. dollar. This gives it more price stability.
The company says it doesn’t plan to halt at USD Coin but aims to add more stablecoins to its settlement platform. To be more specific, Visa intends to support central bank digital currencies (CBDC). Issued by a nation’s central bank directly to its netizens, CBDCs are digital currencies.
Many countries are doing well in their development of a CBDC framework, but mostly are still coping up with the concept. Approximately around 80% of the nation’s central banks were engaged in some type of CBDC work in 2019.
According to experts, while cryptocurrencies like bitcoin initiated the crypto conversation, stablecoins like USD Coin might lead the way towards mainstream usage and adoption.