Visa has revealed its plans to allow customers to convert digital assets to fiat currencies on its platform. the company is testing the acceptance of USDC settlement payments on Ethereum. The goal is to develop “muscle memory” for settlements and handle large value payments in USDC on the Ethereum platform.
The news was delivered by Cuy Sheffield, head of Visa’s crypto division, at the recent StarkWare Sessions 2023 in Tel Aviv. According to Sheffield, global settlement with digital assets and fiat currencies is one of the key areas in which Visa invests.
The payment giant is working to incorporate blockchain technology into its existing network to facilitate faster transactions. However, settlements currently still take place on the SWIFT system, which has limitations that prevent money from being moved as frequently as desired.
To overcome these limitations, Visa has been testing the acceptance of settlement payments with stablecoins, such as USDC. Sheffield confirmed that the company sees huge potential in the blockchain and digital asset space and is looking to take advantage of its value on existing bank rails and rebuild it on top of blockchain rails using stablecoins.
Visa’s Interest in Ethereum And Stablecoins
Former CEO Al Kelly has also shared the company’s plans for central bank digital currencies (CBDCs) and private stablecoins, stating that they “have the potential to play a meaningful role in the payments space.”
Sheffield confirmed the company’s positive outlook on blockchain technology and digital assets, noting that they are exploring ways to take the value that Visa provides on existing bank rails and rebuild it on top of blockchain rails using stablecoins.
We’re thinking a lot about how to take some of the value that Visa provides on existing bank rails, with existing forms of beyond in a rebuild that on top of blockchain rails, using stableboards. If we think there are huge opportunities in that area, it just kind of stays on emerging.
Nevertheless, Visa’s plans to allow for the conversion of digital assets to fiat currencies on its platform is a significant step forward in the company’s efforts to build “muscle memory” around settlements, particularly with regard to Ethereum and stablecoins.
This move highlights the growing interest and adoption of cryptocurrencies and blockchain technology in the traditional finance sector.