The integration of conventional payment cards into cryptocurrency exchange offerings is playing a crucial role in driving adoption of digital assets, according to a VISA executive.
Speaking to Cointelegraph reporter Ezra Reguerra during a panel at the Blockchain Economy Dubai Summit, VISA’s VP head of Innovation & Design Akshay Chopra highlighted the role that Visa cards have played as a bridge between fiat currencies and cryptocurrencies in recent years.
According to Chopra, using cryptocurrencies as a means of payment for everyday items like a cup of coffee at a cafe is still not truly ubiquitous. In an effort to tackle this challenge, Visa partnered with 75 of the biggest cryptocurrency exchanges in 2021 to allow them to issue Visa cards.
This then opened up a network of some 80 million Visa merchants that could by extension serve customers that prefer to use cryptocurrencies as a means of payment, as Chopra tells Reguerra:
“Building that bridge alone in 2021, and these numbers haven’t really been made public, facilitated $3 billion of payment volume.”
Chopra highlighted this as one of a number of opportunities for conventional financial institutions to tap into with the wider Web3 ecosystem.
Related: Visa taps into Solana to widen USDC payment capability
Payments settlement between financial institutions remains another avenue that is ripe for disruption and innovation through blockchain-based solutions. Chopra says existing protocols like the SWIFT payment system still have limitations, including not being fully functional 24 hours a day:
“Banks have trillions of dollars of transactions with each other at the end of the day but there is a cut-off time where you simply cannot transact internationally. It’s a big pain point and its also expensive and inefficient.
Akshay highlights a pilot carried out with Circle using USD Coin (USDC) enabling a number of cryptocurrency exchange partners to settle payments with USDC at the end of a given day:
“It’s cheaper than traditional methods, it happens 24/7 and it’s innovative. You send USDC balance and Visa custodies the funds on the backend of the Ethereum blockchain.”
Regulations remain a hurdle for mainstream financial institutions to truly tap into blockchain technology and cryptocurrency-based payments. However…
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