Visa's CEO says that there is a sensible future for stable coins and CBDCs
Visa's CEO says that there is a sensible future for stable coins and CBDCs
The CEO of the world's largest credit card company told shareholders on Tuesday that stable coins and digital central bank currencies (CBDCs) will play an "significant role" in payment transactions in the future.
The company also published its annual report 2022, in which it wrote about its complementary and competitive relationship with cryptocurrencies.
crypto view of Visa
like CEO Alfred Kelly during A Telephone conference Visa has already "several initiatives" in the blockchain area and has already invested many crypto funds and companies.
"It is still very early, but we continue to believe that stable coins and digital central bank currencies have the potential to play an important role in payment transactions," said Kelly.
Stable coins combine the peer-to-peer character of cryptocurrencies such as Bitcoin with the relative price stability of a different currency or a wealth value-often of the US dollar. This solves the price instability problem that critics-including central banks -claim prevents Bitcoin from being a legitimate currency.
Tether (USDT), the largest stable coin after market capitalization, has a higher daily transaction volume than any other crypto.
In the meantime, CBDCs are a currency issued by the government in digital form based on blockchain rails. The deputy chairman of the US Federal Reserve, Lael Brainard, has shown Support for the introduction of a CBDC in the United States by providing a "safe central bank liability in the digital financial system". Span>
last year visa formed a partnership with consensics to integrate CBDCs into existing payment networks.
In his report, Visa said that "alternative payment systems or products" or participating in it ", which could possibly disinterest, of which some" stablecoin-based payment initiatives "contain.
In a section entitled "Competition", Visa among them called "Digital Wallet Providers" and alternative payments providers, the latter of which included "cryptocurrency platforms". While these places are currently mainly focusing on e-commerce and mobile payments, the company expects them to "expand their offer to the physical point of sale".
"Technology and innovation change consumer habits and activity in the areas of e-commerce, mobile payments, blockchain technology and digital currencies," said the company and added that crypto payment platforms "are both a partner and a competitor of Visa can “.
call damage
cryptocurrencies are not only technological threats and opportunities for visas, but also harmful people. The company's report claimed that its brand could be negatively influenced if its services were used for "legal but controversial" products such as cryptocurrencies, and in this regard they equated with "content for adults" and "gambling".
A month before FTX went bankrupt, visa planned A partnership with the stock exchange to provide a crypto debit card in 40 countries. The program was ended shortly after the collapse.
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