Credit card behemoth, Visa, has announced its partnership with Crypto.com in order to allow fiat payment settlements through the use of the Ethereum blockchain.
In order to facilitate this, Visa’s treasury will be linked with federally-chartered crypto bank, Anchorage, eventually enabling individuals to exchange USD Coin (USDC) through Crypto.com’s payment network. This method allows Crypto.com to send USDC to Visa’s Ethereum address in order to settle some of the transactions that have been sent through the site’s Visa card program.
The payment giant has plans to extend this offering to large Fintech companies and banks that deal in UDSC, BTC (Bitcoin), and ETH (Ethereum). Jack Forestell, Visa’s Chief Product Officer, stated the following during the company’s announcement
“(...)crypto-native fintechs want partners who understand their business and the complexities of digital currency form factors.
The announcement today marks a major milestone in our ability to address the needs of fintechs managing their business in a stablecoin or cryptocurrency.”
Although this move sheds some light on how credit card issuers and banks may continue to welcome cryptocurrency-related services and processes into their offerings, the usage of blockchain technology for such purposes may have some worrisome implications due to the blockchain’s unsustainability in regards to energy usage as well as the length of time taken for transactions.