VISA will allow payments with the cryptocurrency USD Coin

As we pointed out in a previous note, in December of last year VISA partnered with the startup Circle Internet Financial to support the development of the stablecoin "US Dollar Coin" or "USD Coin" with the future objective that this stable cryptocurrency can be integrated into its platform as a means of payment.

Without fear of being repetitive, we must point out that stablecoins or “stable cryptocurrencies” are because their value has a direct correlation with the value of the US dollar, otherwise that of DEFI cryptocurrencies (such as bitcoin, ethereum, etc.), whose value does not revolve around variations in fiat currencies, but rather responds to the market in which it is found. Precisely, for this reason, the great volatility attributed to it, given that there is no government entity that can “keep it under control”.

With which, it makes more sense that USD Coin can be integrated into VISA's network of means of payments, since its value is comparable to that of the dollar.

Apparently the development of USD Coin has come to fruition, since VISA has already announced that it will allow payment settlements with this cryptocurrency, he said. Reuters.

On the other hand, there are other actors who are making similar decisions, such as the case of Elon Musk, CEO of Tesla, who announced a few days ago that he would accept bitcoin as a means of payment for the purchase of his luxurious vehicles. Similarly, financial companies such as BNY Mellon or BlackRock Inc., and MasterCard itself announced the taking of measures to increase the use of cryptocurrencies as a means of investment and payments.

In this sense, it is possible that other institutional investors who have bought a significant amount of bitcoin, act in a similar way, because, with this, they promote the circulation of cryptocurrencies in the market, to achieve their massification, and with it, greater possibilities of increase in value.

How does it work? The cryptocurrency wallet in which the client has their USD Coins stored, will deposit the amount indicated in the transaction in the traditional fiat currency (dollar, for example) in a bank account. This amount will then be transferred to VISA to settle any transaction. With which, the step in which the client has to go to an Exchange to convert their cryptocurrencies into fiat money is eliminated.

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Marilú Lazo
Lawyer from the Pontificia Universidad Católica del Perú (PUCP). Director of The Crypto Legal Blog, she has experience in corporate advice, consumer protection, as well as in matters of personal data protection and new technologies.


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