The credit card company Visa has partnered with Circle to integrate USDC into their payments.
This is part of Visa’s Fast Track system, which is reinventing itself as “network for networks”.
Visa has also invested in companies that may be ready to take the reins if central bank digital currency launches.
The “king” of the credit card industry, Visa, has partnered with Circle to use USDC on Bitcoin Code software. Even more digital integration is on the horizon.
Arrive at a collaboration
While crypto volatility has kept some payment companies at bay, Visa has plunged to connect its payment system to USD Coin ( USDC ). USDC was developed by Circle, a company specializing in digital payments.
While users trade cryptocurrency and make payments using the Circle app , the Visa partnership will focus its efforts on USDC. The stablecoin , which runs on the blockchain Ethereum has a total market capitalization of 2.9 billion. Each USDC is pegged to one US dollar and is backed one to one.
This new partnership will see Circle working with Visa to help integrate USDC into the card company’s platforms. Circle will also integrate its app with Visa processing, and both companies hope this translates into fast, cheap (and potentially international) payments.
In theory, USDC could be sent anywhere in the world where Visa is accepted. Additionally, upon completion of the Fast Track program, Visa will issue a credit card that will allow USDC cardless payments.
Although Bitcoin has been called a store of value, the adoption of a non-volatile asset on the blockchain has been elusive. Could this card fill this gap?
The USDC team also promises to implement a Layer-2 solution that will drastically reduce or even eliminate fees. Another claimed benefit: zero purchase fees through the Coinbase exchange . This potentially facilitates USDC transfers to and from bank accounts.
“This will be the first corporate card that allows businesses to spend a USDDC balance,” said Cuy Sheffield, Visa’s crypto manager.
Change the situation
On the tech side, the USDC runs on the Ethereum blockchain, which recently launched the genesis block of its version 2.0. This new proof of stake version of the blockchain could end network congestion and reduce fees.
Likewise, ETH2 intends to expand massively to very many nodes, rather than a few centralized companies.
More than just Visa
Recently, Visa has shown more interest in digital currencies. The company has invested $ 40 million in Anchorage, a crypto startup. “Continue to think of Visa as a network of networks,” Sheffield said. He suggested that Visa could expand to other stablecoins or other blockchain networks.
Sheffield described Anchorage as potentially crucial for central bank digital currencies (CBDCs). If the US Treasury decided to release a digital dollar, Visa would likely be in a good position to take advantage of it.