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Why the VISA CEO believes in the future of stablecoins and CBDCs

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How and when cryptocurrencies will turn the current financial system upside down is the big question. Still, it seems like a realistic scenario, as global central banks are already developing their own stablecoins; Central Bank Digital Currencies (CBDC). VISA CEO Alfred Kelly also believes that these digital assets will be part of our future. In addition to benefits, however, he also foresees challenges for VISA.

Stablecoins and CBDCs are coming

Cryptocurrencies are generally denounced by governments and central banks. They would be too volatile and therefore not suitable as a means of payment. Stablecoins find a middle ground here. They use the technology of crypto, but they have the stability of, say, the US dollar. CBDCs are stablecoins developed by central banks.

The CEO of the largest credit card company in the world did this week during a conference his say on the future of these stablecoins and CBDCs. According to him, they will play a “significant role” in the future of our payment traffic. The annual report for 2022 was also made public. It frequently mentions both the complementary and competitive possibilities of stablecoins.

“It is still early days and therefore difficult to predict, but we believe that stablecoins and CBDCs will play an important role in the payment system.”

Collaborations and competition

The report indicates that stablecoins and CBDCs pose a threat to VISA, but that interesting collaborations are also possible. For example, VISA can implement these digital assets in its own payment system, as it has done in the past in a collaboration with ConsenSys. At the same time, they also see competition at VISA. New payment apps, digital wallets, and crypto platforms, for example.

“Innovation and technology are shifting consumer behavior and creating growth in ecommerce, mobile payment, blockchain technology and cryptocurrencies. These developments are both potential collaborations and competitors for VISA.”

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