How Visa Processes Crypto Payments in USDC?
March ushered crypto enthusiasts into a new world of possibilities, with different milestones attained in the eventful month. It is the third month of the year, and already we have seen Bitcoin reach an all-time high of $60,000, a mind-blowing reality considering where BTC was some years ago. Many new coins have been bolstered this month, with companies making strong statements about the validity of Cryptocurrency. On the 29th of March 2021, another milestone was reached in achieving an unprecedented and undiluted free flow of transactions across different cryptocurrency exchanges. Visa, a worldwide brand that transacts millions of dollars daily, announced that the USDC could settle transactions with its operations over the Ethereum blockchain. In retrospect, it means the coin backed up by the US dollar (USDC) can be transacted with Visa from different parts of the world. The announcement means a gradual transition to the bridging of the gap between digital and fiat currencies.
What does it mean for Businesses?
Visa strives to make innovative payment options for its users. With the cryptocurrency market gaining ground daily, the company thought it best to ease transaction hassles by accepting crypto payments over the Ethereum network. This announcement is the first step in connecting the world to Cryptocurrency, and Visa has partnered with Crypto.com to pioneer this move.
The transition that Visa aims to make is geared towards securing the payments on crypto networks and also intensifies a smooth pathway for all forms of money movement across different platforms. In the past year, Visa has been working with top organizations to realize this goal. Teaming up with Anchorage has allowed Visa to receive USDC from Crypto.com and enables the cryptocurrency platform to fulfill its obligations.
Businesses that deal in Cryptocurrency will be ecstatic by this recent development as they can be free from the hassles of cost and difficulties in settling in fiat currency. However, Visa enables these businesses to settle transactions in USDC, making it easy for them to evaluate models. Ultimately, businesses do not need to have traditional fiat in the workflows; the USDC feature simplifies operations for both the businesses and the crypto platforms. Furthermore, the development by Visa makes it easy to support Central Bank digital currency when they emerge in the future.
The aim of Visa in settling transactions in crypto is one step in their big picture of facilitating payments across all forms of digital currencies all over the world. The market of Cryptocurrency becomes a lot faster and efficient with this addition by Visa. The world becomes more exciting with the Visa acknowledgment of processing payments with USDC.
How does it work?
The development means for traders because the Visa card is now available to make digital currency payments, which is subsequently converted to USDC and finally settled in Visa's ERC-20 wallet address. This eliminates the rigor of waiting for confirmations before payment is processed to access USDC.
Anchorage has become the custodian that will help facilitate the USDC transactions on Crypto.com. The platform is built to accommodate Visa's transactions in crypto. This then solidifies the relationship that has been but for two years. Plus, with the popularity of cryptocurrency and its intending worldwide reach, the bond will continue to tighten as more transactions will be carried out.
Issues the development may pose
This news is a breath of fresh air for many enthusiastic crypto traders, investors, and general spectators; however, there may be some issues that can affect Visa's development in the long run.
Ethereum is currently growing by the day, with more users jumping on the blockchain to invest and trade. There are currently over one million Ethereum transactions done in a day; with the increased users, transaction fees increase in the long run. Consequently, it would be expensive to send a small amount of USDC across blockchain networks.
Although it is a relatively new venture, there would be an improvement that will cater to people's magnitude on cryptocurrency networks.
The Future Currency of the world
It is quite intriguing how we are gradually transitioning to Cryptocurrency ruing the financial market. There are now tales of companies transacting business using bitcoin. PayPal and some other payment options have incorporated bitcoin into their payment system. Not only that, you can now buy products using Cryptocurrency. So, if you are thinking about getting a new Tesla, you can check your Crypto Wallet and purchase it. Elon Musk is a strong believer in the possibilities of bitcoin, Dogecoin, and other cryptocurrencies.
We see these changes long before the Visa settlement of Crypto payments 3s announced; there were speculations that Cryptocurrency will be the economy's future. It is steadily looking to be true, with many more businesses and sectors of the economy being accustomed to Cryptocurrency's regulations and operations.
It becomes the fact that digital currency and fiat will become harmonious in our conscience in the world today. With Visa making this powerful statement, there will be a massive chain reaction from other payment options that view Visa as an authority.
Furthermore, many other payment options will not want to be left out in the cryptocurrency camp's massive movement. There are now millions of active cryptocurrency users, whether traders or investors; many people are now immersed in the network of different coins.
As a result of this transition, companies, governments, and other bodies will look to be a part of the trend not only to feel amazing but to get their customers back. You can imagine the amount of people Vida has bought with the statement that they have made recently. People that did not use Visa will start thinking about it because it accommodates Cryptocurrency payments. Visa will soon spread its wings to other cryptocurrency networks and capture more people to its brand.
This announcement is a catalyst for change in the financial sector of the world. Over 200 countries frequently use Visa payments in their operations; hence the popularity of Cryptocurrency will continue to spread since a credible platform is backing it yet again.
BitForex is an exchange service platform that can be classified as one of the Top 10 cryptocurrency exchange services. It is focused on providing millions of users with a digital currency trading and investment tool that is not only safe but also professional and convenient. BitForex has a high customer-oriented culture and state-of-the-art financial technology.
BitForex is programmed in a way that it can quickly adapt to the changes of the Crypto market while introducing new features like margin trading, enhanced trading charts, derivatives, and a host of others. The headquarter of BitForex is located in Hong Kong, while there are branch offices in countries like the United States, South Korea, and Singapore.