Would Crypto Winter Change Visa’s Crypto Strategy?
With the growing popularity of blockchain, card giants such as VISA and Mastercard have been proactive in adapting the technology. VISA, the US-based payments giant has always been an ardent supporter of blockchain and cryptocurrency, with major crypto investments and partnerships with several cryptocurrency firms.
Is VISA changing its strategy amid the crypto downfall?
According to a recent report from Reuters, it emerged that VISA is slowing down its pace of forming new associations in cryptocurrency, following the continuous downward trend in the market since the FTX and BlockFi fiasco that wiped out a lot of money. The report, which was based on input from undisclosed sources, also said the payments company is holding off on launching new blockchain-based services and products until markets stabilize.
Contrary to the report, the head of VISA’s cryptocurrency division, Cuy Sheffield, expressed his displeasure with the speculation, saying that VISA remains committed to its cryptocurrency ambitions despite the pitfalls of 2022. He said the reports were not accurate. and the company is not going to change its crypto strategy and will continue to invest in the sector along with building partnerships with crypto firms.
“Despite the challenges and uncertainty in the crypto ecosystem, our view has not changed that fiat-backed digital currencies running on public blockchains have the potential to play an important role in the payments ecosystem,” commented Sheffield.
VISA and its affinity with Blockchain
VISA, an established brand in the card payment space, has already partnered with more than 65 crypto wallets to date. They have also applied for several patents related to blockchain technology at the US Patents Office. They have also incorporated the technology into their existing services and products, ranging from VISA cards, which allow users to buy crypto, to connecting digital wallets to VISA cards. At a shareholder meeting in January, VISA CEO Mr. Kelly expressed that “we continue to believe that stablecoins and central bank digital currencies have the potential to play a meaningful role in the payments space.”
According to the latest updates, VISA has also entered into a global partnership with Wirex, an app that enables users to pay via cryptocurrency. VISA will help the brand expand its reach in the UK and the Asia-Pacific region to expand payment options for users by connecting the banking and merchant network with digital currencies.
Conclusion
The crypto industry may be facing a slowdown due to recent events, but the uses and use cases of blockchain technology are constantly expanding due to its secure and decentralized nature. As a result, payment companies like VISA see a huge potential to exploit and it is clear that they are continuously adapting and innovating to stay ahead of the race.
Nancy J. Allen is a crypto enthusiast and believes that cryptocurrencies inspire people to be their own banks and step aside from traditional money exchange systems. She is also fascinated by the blockchain technology and its function.
