VISA to offer Crypto-related services, Financial institutions move towards Crypto

The world’s largest payment processor, Visa Inc., has announced that it will launch a global crypto advisory service for clients. Its services will be available to banks and merchants as cryptocurrencies continue to gain momentum towards integration into the mainstream. 

The unprecedented demand for crypto services is what pushed the company to look into the industry more seriously as financial institutions aim to attract or retain customers through crypto offerings, retailers delve into the NFT markets, and banks explore digital currencies. Visa’s services will include educating institutions on cryptocurrencies, giving clients the option to use Visa for digital offerings, and helping manage backend operations. 

Uma Wilson, an EVP at UMB Bank, has said that “We came to Visa to learn more about crypto and stablecoins and the use cases that are most relevant for our retail and commercial business lines.”

Visa recently conducted a study where they found that almost 40% of crypto owners are likely to switch their primary bank to one that offered crypto-related products by next year. Currently, the company uses its network to allow for the trading of digital currency. The company also offers credit cards that let users earn bitcoin through purchases and allows the use of USD Coin, a cryptocurrency linked directly to the US dollar. 

Vasant Prabhu, CFO of Visa, reported that cryptocurrencies must obtain more stability in order to be used as a medium of exchange. 

“If the price is going to fluctuate from $60,000 to $50,000 in a few hours, it’s a very difficult thing for a merchant to accept (bitcoin) as a currency. I don’t know if cryptocurrencies like bitcoin will ever be a medium of exchange [but] Stablecoins will,” Prabhu said.

Source: ABS-CBN