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Cryptocurrencies: Visa using Stablecoin to settle transactions to entice FinTechs

*Payments giant Visa says its network will use a Stablecoin backed by the US Dollar to settle transactions, promising to offer the service to more partners and financial-technology companies later this year

Isola Moses | ConsumerConnect

Visa Incorporated has disclosed that its payments network will use a stablecoin backed by the US Dollar to settle transactions, as cryptocurrencies and Blockchain technology gain more acceptance in the established financial system even amid reservations by several investors and industry regulators worldwide.

The San Francisco-based (US) payments giant in a statement Monday, March 29 said that as part of a pilot programme, Visa is using USD Coin to settle transactions over Ethereum, with the help of the Crypto.com platform and Anchorage, a digital-asset bank.

Visa will offer the service to more partners later this year, said the payments firm.

It was learnt that traditional financial companies are beginning to embrace cryptocurrencies and blockchain projects more than a decade after the creation of Bitcoin in 2009.

Jack Forestell, Visa’s Chief Product Officer, in a statement said the firm’s move was partly an effort to serve financial-technology companies.

Forestell stated: “Crypto-native Fintechs want partners who understand their business and the complexities of digital currency.

“The announcement today marks a major milestone in our ability to address the needs of Fintechs.”

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