Visa to Test Stablecoin Payments
Payment giant Visa sees blockchain's potential and seeks to integrate the revolutionary technology into its system.
Visa’s goal is to create a new service that will allow clients to convert digital assets into fiat, similar to how it converts foreign currencies, according to the company’s crypto division head Cuy Sheffield.
This is huge! pic.twitter.com/CFniLLBq5C
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“The same way that we can convert between dollars in euros on a cross-border transaction, we should be able to convert between digital tokenized dollars and traditional dollars,” he said.
At the Ethereum-focused conference, StarkWare Sessions 2023 Sheffield in Tel Aviv, Sheffield stated:
“We’ve been testing how to actually accept settlement payments from issuers in USDC starting on Ethereum and paying out in USDC on Ethereum. So, these are large value settlement payments.”
Although Visa is exploring the integration of blockchain technology into its network to facilitate faster money transfers, transactions are currently processed through the SWIFT system.
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“We set all over Swift, so we can’t move money as frequently as we’d like because there are a number of limitations that exist in those networks, and so, we’ve been experimenting. We’ve been testing how to actually accept settlement payments [with stablecoins].”
In 2021 Visa announced using USD Coin (USDC) for settlement with the Ethereum network.
During last year’s Visa shareholder meeting, former CEO Al Kelly also discussed the company’s plans for CBDCs and private stablecoins like Tether. He stated that these currencies have the potential to impact the payments industry significantly and that the company already has several initiatives in the works.