[Digital Today Reporter Hwang Chi-gyu] Visa, a global credit card network, is conducting a test using the Ethereum blockchain to use USDC, a stable coin, for transaction settlement in its payment network.
Visa has started a pilot program related to Crypto.com, a payment and cryptocurrency platform, and will provide it to more partners later this year, Reuters reported on the 29th (local time).
USDC is a stablecoin-type cryptocurrency that is priced one-to-one to the US dollar, and is issued by the US cryptocurrency exchange Coinbase, the Center established as a consortium by Circle.
“We are seeing a growing global consumer demand for accessing, holding and using digital currency, and there is a demand from our customers to develop products that provide that access to consumers,” said Cui Sheffield, Director of Visa Crypto Division. He explained the background of this project.
In the meantime, in order to pay for coffee with Crypto.com Visa card, it had to be in a cryptocurrency wallet so that the cryptocurrency could be converted into legal currency. This cryptocurrency wallet deposits fiat currency in a bank account so that it can be transferred to the last Visa on the day of payment. This incurred cost and complexity.
Visa’s move is focused on enabling transactions to be settled without converting cryptocurrency into fiat currency using the Ethereum blockchain.
Visa completed its first transaction this month in partnership with Anchorage, a cryptocurrency custudy and digital asset bank. Testing was conducted by Crypto.com sending USDC to Visa’s Ethereum address in Anchorage.
Author/ Translator: Jamie Kim
Bio: Jamie Kim is a technology journalist. Raised in Hong Kong and always vocal at heart. She aims to share her expertise with the readers at blockreview.net. Kim is a Bitcoin maximalist who believes with unwavering conviction that Bitcoin is the only cryptocurrency – in fact, currency – worth caring about.