Visa announces support for cryptocurrencies, to pursue projects in digital currency

Global payments technology company Visa is placing its bets on cryptocurrency to expand its “network-of-networks to support new forms of commerce,” the company said in a blog post titled ‘Advancing our approach to digital currency’.

The company notes that digital currencies have gained traction beyond fintech to now include financial institutions, central banks, consumers and businesses with circulation is growing rapidly, reaching over $10 billion in May.

“Visa has been working closely with licensed and regulated digital currency platforms like Coinbase and Fold to provide a bridge between digital currencies and our existing global network of 61 million merchants,” it says while adding that the company has linked services with more than 25 digital currency wallets worldwide.

It also acknowledges that policy leaders and regulators continue to remain sceptical of digital currencies over issues ranging from consumer protection to payments resilience, but stated intent to address these concerns “by working closely with leading companies and the public sector,” including the World Economic Forum (WEF) and Central Bank Digital Currency (CBDC).

The company states a three-point plan:

> Support to digital currencies and blockchain networks that clients and partners demand, in keeping with our broader network-of-networks strategy.

> Pursuing projects that allow Visa to apply its expertise in securing transaction data to new networks and technologies that can benefit existing clients and partners.

> Shape and support the role digital currencies play in the future of money

Visa is not the only paytech company intrigued by cryptocurrencies as Mastercard also extended support to blockchain and cryptocurrency in financial services, Mint reported.

Notably, both Visa and Mastercard have registered patents in blockchain technology and were also among the original partners for Facebook’s Libra cryptocurrency project. However, experts told the paper both are unlikely to work with existing coins given their volatility.