Visa launches crypto advisory service for financial institutions and merchants

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A Visa credit card is visible on a computer keyboard in this illustration photo taken on September 6, 2017. REUTERS / Philippe Wojazer / Illustration / File Photo / File Photo

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December 8 (Reuters) – Visa Inc (VN), the world’s largest payment processor, on Wednesday launched a global crypto advisory service for clients such as banks and merchants as digital currencies adoption is getting bigger.

Visa’s move comes against the backdrop of unprecedented investor demand for crypto services, and the company’s latest offering is aimed at financial institutions keen to attract or retain customers with a crypto offering. , retailers looking to delve into non-fungible tokens (NFTs), or central banks exploring digital currencies.

Visa’s services include training institutions on cryptocurrency, the ability for customers to use the payment processor network for digital offerings, and assistance in managing backend operations.

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“We came to Visa to learn more about crypto and stablecoins and the most relevant use cases for our retail and business lines of business,” said Uma Wilson, Executive Vice President of ‘UMB Bank, an American regional lender.

A new global study from Visa has shown that nearly 40% of crypto owners surveyed are likely or very likely to change their primary bank to one with crypto-related products in the next 12 months.

Visa currently uses its network to enable the purchase, sale and custody of digital currency. It also offers a credit card that allows users to earn bitcoins on purchases and also allows the use of USD Coin, a stable cryptocurrency whose value is directly linked to the US dollar, to settle transactions on its network. of payment. Read more

However, for cryptocurrencies like bitcoin to be used as a medium of exchange, price stability is needed, Visa chief financial officer Vasant Prabhu told Reuters.

“If the price is going to fluctuate from $ 60,000 to $ 50,000 in a matter of hours, it’s a very difficult thing for a trader to accept (bitcoin) as a currency,” Prabhu said.

“I don’t know if cryptocurrencies like bitcoin will ever be a medium of exchange. Stablecoins will be,” he said, adding that Visa would facilitate such transactions when the time comes.

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Report by Noor Zainab Hussain in Bangalore; Editing by Shailesh Kuber

Our Standards: Thomson Reuters Trust Principles.

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