VISA is experimenting with USDC stablecoin on the Ethereum network for payment settlement.
Cuy Sheffield, the head of VISA’s crypto division talked about the company’s plan to integrate blockchain technology into its existing infrastructure to facilitate digital assets.
According to him, the aim is to enable its customers to convert digital assets into traditional currencies on its platform. The company is already experimenting with accepting settlement payments in USDC on Ethereum and paying out in USDC on the same blockchain.
At the moment, the company has planned to test and limit this feature to large-value settlements only. Sheffield stated that the process will be similar to converting Dollars to Euros in cross-border transactions. In this case, it will be converting digital Dollars to traditional Dollars.
At present, the settlements are conducted through the SWIFT system, which takes a lot of time to process and settle cross-border payments when compared to blockchain technology.
The company is focusing on stablecoin by making it the primary token to be used to settle digital payments for its new blockchain enabled infrastructure. This feature will also help it facilitate cross-border payments using CBDC (Central Bank Digital Currency) which is also DLT-based technology.
Sheffield confirmed Visa’s perspective on blockchain technology and digital assets, stating that the company is considering bringing value to traditional banking channels by integrating blockchain using stablecoins.
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Paras is a blockchain writer & video creator at Katoch Tubes. In his free time, he loves watching space exploration documentaries & Hollywood movies.