- Payment giant Visa is on the rise in stablecoins, but it may be missing the potential of DeFi. On Thursday, Visa made statements regarding the first quarter of 2021. CEO Al Kelly tried to explain “how Visa thinks about crypto in general and what the approach is”.
Payment giant Visa is on the rise in stablecoins, but it may be missing the potential of DeFi. On Thursday, Visa made statements regarding the first quarter of 2021. CEO Al Kelly tried to explain “how Visa thinks about crypto in general and what the approach is”.
Visa and Investments
The financial services firm, which has over $ 72 billion in assets as of 2019, is tracking crypto payments, including partnerships that enable crypto debit cards and investing in Zap, a crypto payment initiative. Also, earlier this month, Visa had to give up purchasing the $ 5.3 billion payment platform Plaid on the grounds that it is anti-trust.
Thursday’s comments suggest that Visa still has long-term plans in the industry. It makes it clear that he believes the company is in an excellent position to pursue them.
“We believe we’re in a unique position to help make cryptocurrencies more secure, convenient and viable for payments,” Kelly said, thanks to Visa’s size, integrations, and brand recognition.
However, Ethereum fans may be surprised by DeFi’s explosive growth in the company’s somewhat outdated view of smart contract platforms.
Payment Giant and Blockchain
Kelly said Visa divides blockchain assets into two categories.
“Cryptocurrencies that represent new assets such as Bitcoin and act as a store of value” and more routinely used “stablecoins directly backed by existing fiat currencies.”
For store of value cryptocurrencies, Kelly said Visa would act as a reputational growth ramp.
“Our strategy here is to work with wallets and exchanges to enable users to purchase these currencies using their Visa credentials, or to deposit funds into our Visa credentials to purchase fiat at any of the 70 million merchants where Visa is globally accepted.”
However, when it comes to stablecoins, Visa takes a much higher bullish position and describes cryptocurrencies as “a new payment innovation that could have the potential to be used for global trading like any other fiat currency.”
The company also told investors that Visa would be ready to take advantage of any crypto emerging as a dominant force in payments due to relationships with wallet providers such as “Crypto.com, [BlockFi], Fold, and BitPanda.” This also points to the possible direct integration of 160 currencies with cryptocurrency networks.