Visa may introduce its own token as part of its stablecoin initiatives in the coming days in the nearest future.
This is in line with an article published last Tuesday, August 12th by Bloomberg News, which looks into Visa’s broader stablecoin moves and cites sources with knowledge of the problem.
In an interview with Bloomberg, Cuy Sheffield, Visa’s head of cryptocurrencies, described stablecoins in general as “just another mechanism for value exchange.” And went on further to say that he sees their approach addressable market growing significantly as a result.”
Many analysts, according to the Bloomberg study, sees stablecoins has a possible medium and opportunity rather than a danger to Visa. Although stablecoin payments are logically less expensive than card costs, they still need services like fiat currency translation, bank payment rail connections, and fraud protection, dispute resolution, and compliance checks.
Richard Crone, CEO of payments consulting firm Crone Consulting, stated that they are attempting to take advantage of the opportunity by equipping every stablecoin platform with a payment feature which has a big opportunity.
When questioned by PYMNTS regarding the claim that Visa is considering launching its own stablecoin, a representative for the business stated that it is hard to rule anything out in the stablecoin ecosystem.
However, we are concentrating on what we can accomplish right now: expanding the number of stablecoin-linked cards, allowing stablecoin settlement, and working closely with our bank partners to assist them in using stablecoins for a variety of purposes. That is our top priority for the near future and what the market is doing at the moment.
The majority of Visa’s most recent earnings call was devoted to its continuing investments and wagers on stablecoins, which had recently gained legal status as digital assets in the United States.
In a call with investors, Visa CEO Ryan McInerney stated that stablecoins are helping consumers and businesses save money in U.S. dollars, but they also want to spend that money, and there’s no better way to do that than with a Visa crypto card.
“We’re working to improve liquidity management, streamline treasury operations, and promote faster and more economical cross-border transactions by piloting and collaborating with stablecoin companies as they expand their stablecoin settlement stack.”
The CEO continued, “We are also assisting banks with creating and setting up their own stablecoins and reaping the rewards of programmable money.” “This space has so much more to offer.”
In a paper released last week, PYMNTS looked at the rise of stablecoins and made the case that, despite certain regulatory and logistical challenges, there is proof that stablecoins “are not just waiting around” to join the wider financial system.
Rather, they are collaborating, constructing, and connecting to traditional banking in order to transform not only the flow of money but also the store of value itself, according to the research.
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