Visa plans to make its processes much more efficient thanks to its new and improved ETH compatibility. Visa will now be able to support transactions in cryptocurrency with payments being acceptable directly in USDC.
The USD Coin (USDC) has had its price be continuously volatile, with the lowest over the previous 7-day period being about $0.99 and the highest being recorded at $1.01.
Visa utilized Ethereum as leverage in hopes of settling payments
It is true that Visa had worked with both Anchorage and Crypto.com in the past to support digital and electronic currencies. It should also be mentioned that the transactions had to be converted into fiat prior to being ultimately settled.
This contributed to Visa weighing its options and eventually deciding to have its digital transactions be directly on the ETH blockchain, and it is accomplishing this through the employment of the USDC stablecoin.
Compatibility with Ethereum seems logical as the initial successful transaction took place in March
It would therefore seem that implementing a system that incorporates increased compatibility with Ethereum through the utilization of USDC is indeed a logical step for Visa. This is due to the fact that the company itself has long been supportive of cryptocurrency in general, even going as far as calling Bitcoin the next form of ‘digital gold’. Interestingly enough, its long-time rival MasterCard had taken the opposite stance on cryptocurrency, with its CEO Ajay Banga going as far as calling it ‘junk’ and not seeing anything of intrinsic value in Bitcoin, the world’s largest crypto asset.
Still, this is an important step for Visa as it looks to get more involved with cryptocurrency and digital trading. In fact, Visa had actually begun enabling payments to be made in cryptocurrency through USDC this past December. However, these transactions were still being settled via fiat at the time. It is with this progressive mindset that Visa was able to announce the very first triumphant transaction settlement that did take place earlier in March this year. Crypto.com had managed to send USDC to Visa’s ETH blockchain, the address of which had been at Anchorage, which itself is an institutional security firm specialising in blockchain.