Visa Unveils Cryptocurrency Advisory Service for Financial Institutions, Merchants

Visa, the world’s largest payment processor, launched a global crypto advisory service for clients such as banks and merchants on Wednesday, as the adoption of digital currencies accelerates.

Visa’s move comes amid unprecedented investor demand for cryptocurrency services, and the company’s latest offering is aimed at financial institutions looking to attract or retain customers with a crypto offering, retailers interested in non-fungible tokens (NFTs), and central banks investigating digital currencies.

Visa’s services include educating institutions about cryptocurrencies, allowing clients to use the payment processor’s network for digital offerings, and assisting with backend operations management.

“We came to Visa to learn more about crypto and stablecoins, as well as the use cases that are most relevant for our retail and commercial business lines,” Uma Wilson, executive vice president at UMB Bank, a regional US lender, explained.

According to a new global study conducted by Visa, nearly 40% of cryptocurrency owners polled would be likely or very likely to switch their primary bank to one that offers crypto-related products within the next 12 months.

Visa currently uses its network to facilitate the purchase, sale, and custody of digital currency. It also provides a credit card that allows users to earn Bitcoin on purchases, as well as the ability to settle transactions on its payment network using USD Coin, a stablecoin cryptocurrency whose value is directly pegged to the US dollar. As of 12:30pm on December 8, the price of bitcoin in India was Rs. 40.68 lakh.

However, for cryptocurrencies such as Bitcoin to be used as a medium of exchange, price stability is needed, Visa’s Chief Financial Officer Vasant Prabhu told Reuters.

“If the price is going to fluctuate from $60,000 to $50,000  in a few hours, it’s a very difficult thing for a merchant to accept (bitcoin) as a currency,” Prabhu said.

“I don’t know if cryptocurrencies like Bitcoin will ever be a medium of exchange. Stablecoins will,” he said, adding that Visa would facilitate such transactions when the time was right.