Visa launches crypto advisory service for commercial clientswritten by Bella Palmer
The group's advisory service is being geared towards financial institutions keen to attract or retain customers with a crypto offering
The world's biggest payment processor Visa has launched a global cryptocurrency advisory service for commercial clients like banks, as the adoption of digital currencies continues to gain momentum.
The group's advisory service is being geared towards financial institutions keen to attract or retain customers with a crypto offering.
It is also likely, the group hopes, to appeal to certain retailers looking to delve into the world of non-fungible tokens (NFTs), or central banks exploring digital currencies in more depth.
A global study the group conducted reportedly revealed that nearly 40 per cent of crypto owners would be 'likely or very likely' to switch their primary bank to one that offers crypto-related products in the next year.
Visa's new services include educating institutions about cryptocurrencies, allowing clients to use the payment processor's network for digital offerings, and helping manage backend operations.
Visa said in a statement: For financial institutions eager to attract or retain customers with a crypto offering, retailers looking to delve into NFTs, or central banks exploring digital currencies, understanding the crypto ecosystem is a vital first step.
Through their work with more than 60 crypto platforms, Visa’s global network of consultants and product experts have deep expertise to help financial institutions evaluate the crypto opportunity, develop concrete strategies, and pilot new user experiences and innovations like crypto rewards programs and CBDC-integrated consumer wallets, it said.
Visa currently uses its network to allow buying, selling, and custody of digital currency.
It also offers a credit card that lets users earn bitcoin on purchases and allows the use of 'USD Coin', a stablecoin cryptocurrency, the value of which is pegged directly to the US dollar, to settle transactions on its payment network.
But, for cryptocurrencies such as bitcoin to be used as a medium of exchange, price stability is needed, Visa's chief financial officer Vasant Prabhu, told Reuters.
He said: If the price is going to fluctuate from $60,000 to $50,000 in a few hours, it's a very difficult thing for a merchant to accept (bitcoin) as a currency.
He said: I don't know if cryptocurrencies like bitcoin will ever be a medium of exchange. Stablecoins will.
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