Visa CEO says there is a “useful” future for stablecoins and CBDCs

The CEO of the world’s largest credit card company told shareholders on Tuesday that stablecoins and central bank digital currencies (CBDCs) will play an “important role” in the payments space going forward.

The company also published its annual report for 2022, in which it simultaneously wrote about its complementary and competitive relationship with cryptocurrencies.

Crypto Outlook appears

As CEO Alfred Kelly explained during a prof conference callsVisa already has “multiple initiatives” underway in the blockchain space and has already invested in several crypto funds and companies.

“It is very early days, but we still believe that stablecoins and central bank digital currencies have the potential to play a meaningful role in the payments space,” Kelly said.

Stablecoins combine the nature of peer-to-peer cryptocurrencies such as Bitcoin with the relative price stability of another currency or asset – often the US dollar. This solves the problem of price instability that critics include central banks The claim prevents Bitcoin from being a legitimate currency.

Tether (USDT), the largest stablecoin by market cap, has a higher daily transaction volume than any other cryptocurrency.

Meanwhile, a central bank currency is a government-issued currency in digital form, built on the rails of the blockchain. Federal Reserve Vice Chairman Lyle Brainard Show support To launch a central bank digital currency in the United States by providing “safe central bank debt in the digital financial ecosystem.”

Last year, Visa You have been Partnership with ConsenSys to expand CBDCs to existing payment networks.

Visa said in its filing that it is “developing or participating in alternative payment systems or products” that could cause its role to be invalidated, some of which include “stablecoin-based payment initiatives.”

In a section titled “Competition,” Visa named “digital wallet providers” and alternative payment providers, the latter of which included “cryptocurrency platforms.” While these venues focus primarily on e-commerce and mobile payments for now, the company expects them to “expand their offering to the physical point of sale.”

“Technology and innovation are changing consumer habits and driving growth opportunities in e-commerce, mobile payments, blockchain technology, and digital currencies,” the company said, adding that crypto payment platforms “can be both partners and competitors for Visa.”

Damage to reputation

Cryptocurrencies not only pose technological threats and opportunities for Visa, but also its reputation. The company’s report claimed that its brand can be negatively impacted when its services are used for “legal but controversial” products such as cryptocurrency, making it the equivalent of “adult content” and “games” in this regard.

A month before FTX went bankrupt, Visa Scheme Partnership with exchange to provide crypto payment card in 40 countries. program was Almost finished Soon after the crash.

Visa CEO Says Yet There’s a “Profitable” Future for Stablecoins and CBDCs appeared first on CryptoPotato.

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