The payment giant Visa wants to invest in stablecoins. Visa also plans to give its customers the ability to convert digital assets into fiat money on its platform. This is evident from a presentation by the head of Visa’s crypto department during the Starkware Sessions 2023.
. @cuysheffield and @Visa have fell into the rabbit hole of Account Abstraction!
This is huge! pic.twitter.com/CFniLLBq5C
— Starknet-Ecosystem.com ✨ (@StarkNetEco) February 5, 2023
Accept payments
“We are testing to what extent we can accept settlement payments from stablecoin issuers in USDC on Ethereum and also cash out in USDC on Ethereum. In the first instance, this concerns larger payments,” said Cuy Sheffield during the event.
According to the director of Visa, the payment company is currently investing in the settlement of crypto coins and fiat coins. “It’s one of the areas where we want to build muscle memory. It must be possible to exchange digital assets for traditional dollars in the traditional way,” says Sheffield.
The payment giant is also trying to use blockchain technology for its existing networks, but so far all settlements are still going through the Society for Worldwide Interbank Financial Telecommunications (SWIFT) system.
The limitations of SWIFT
At the moment, therefore, the Visa network mainly runs on the SWIFT system. “We are currently fully on SWIFT, so we can’t do as many transactions as we would like due to the limitations on that network. That’s why we’re experimenting with other technologies,” says Sheffield.
Visa CEO Al Kelly is also optimistic about the use of stablecoins. “Stablecoins and central bank digital currencies have the potential to play a significant role in the payment world and a number of initiatives are currently underway,” said Kelly.
“We think a lot about ways to transfer the value that currently lives on the traditional payment rails to blockchain technology. […] We see great opportunities in that area,” says an optimistic Sheffield during the Starkware Sessions 2023.