Visa stands ready crypto | Dive into payments

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At Visa’s annual shareholder meeting on Tuesday, Visa CEO Al Kelly said the card giant remains committed to the uses of cryptocurrency despite their recent turmoil. He also hinted at potential changes to the management team.

The company has not suffered any credit losses from recent setbacks in the crypto industry, and the investments it has made in crypto startups or funds are irrelevant, Kelly said.

Following the collapse of crypto exchange FTX in November, other crypto businesses were negatively affected, including crypto lender BlockFi, which suspended withdrawals due to its exposure to FTX.

Support from big companies such as Visa, which is the largest card network company in the United States, could bolster the nascent crypto industry. This is especially true in the case of Visas, given its support for providing consumers with channels to move their assets between cryptocurrencies and government-issued currencies.

Stablecoins, which are a form of crypto typically pegged to fiat currency, remain promising, as do related digital assets known as central bank digital currencies, Kelly said in response to a shareholder question relayed by a Visa executive at the meeting.

We continue to believe that stablecoins and central bank digital currencies have the potential to play a significant role in the payments space, Kelly said.

The Visa CEO went on to tout the benefits of the company’s partnerships around the world that allow consumers to buy cryptocurrency using Visa cards and connect their digital wallets to cards so they can spend money tied to the value of their crypto holdings.

While he said he could understand why a shareholder would ask the crypto question, given the recent high-profile crypto failures, he told his audience that the company would be careful not to put its reputation at risk in the industry. ‘arena.

Management team turnover?

The annual meeting is Kelly’s last as CEO of Visa, as next month he will hand over the CEO role to Ryan McInerney, although he will remain as full-time executive chairman, he said. Referring to McInerney, Kelly suggested there may be changes to the management team at the San Francisco-based company in relation to the CEO change.

I will do everything I can to support Ryan and his newly set up leadership team, Kelly said. I will support them at all times and know that Visa will reach new heights under their leadership.

A Visa spokesperson declined to comment on the leadership changes, citing the company’s plan to release an earnings report later in the day. It’s not uncommon for a new CEO to change management teams, but it can sometimes herald strategic changes.

A shareholder proposal calling on Visa to permanently separate the positions of CEO and chairman of the board of directors did not pass at the annual meeting, attracting only 17.4% of the votes cast. The company had recommended that shareholders vote against the proposal.

Avoid obstacles to legal sales

Kelly also touched on other topics at the meeting, including Visas’ use of capital; its stock price in relation to the company’s performance; and the role of business in applying standards as it facilitates transactions.

In response to a question from shareholders about Visa’s role in facilitating transactions, Kelly took the opportunity to reiterate the company’s previous criticisms of standardization efforts that could place restrictions on legal sales.

Last year, the International Organization for Standardization approved a single merchant category code for sellers of firearms and ammunition. The new ISO code, which has not yet been implemented, will provide a way to track arms sales in card transactions.

In my view, asking private companies to serve as moral arbiters over which legal assets can be bought or sold sets a very dangerous precedent, Kelly said. In addition, we believe that managing to subjective standards would expose Visa to significant reputational and other risks and ultimately become unsustainable. That said, we do not condone the use of our network or our products for any illegal activity.

Kelly’s response also talks about Visas’ entanglement last year in a court case related to child pornography. Reacting to a ruling in the case, Kelly also stressed that Visa is not in the business of making moral judgments when it comes to lawful purchases using the company’s card network.

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