With the ebb and flow of cryptocurrency values, the financial technology giant Visa is making significant waves in this digital space. Despite Bitcoin, Ethereum and other key cryptocurrencies displaying a sideways trading trend, Visa’s recent announcement regarding its increased use of Circle’s USDC stablecoin could potentially influence a shift in this landscape.
Cryptocurrency received a further jolt when the U.S. Securities and Exchange Commission (SEC) insider subtly hinted towards a $15 trillion market shift. Although Bitcoin prices have suffered a setback, affecting other top ten cryptocurrencies, Visa’s announcement has rekindled the faith in digital finances.
The aim behind Visa’s move is to tap into the cryptocurrency stablecoins to further expand its network, with Bitcoin, Ethereum, XRP, BNB, Cardano, Dogecoin, Solana, Toncoin, and Tron in sight. Their experimentation with USDC, the market’s second-largest stablecoin, seeks to augment the speed of cross-border payments, a move that could open the door to future expansion in the realm of Bitcoin and other cryptocurrencies.
A pilot program has also been initiated, where the U.S. dollar-pegged USDC will be sent to select merchants using the Solana Blockchain. Details reveal that the potential partnership between USDC and Visa may revolutionize payments, commerce, and financial applications, emphasizing Visa’s strong intent to harness the potential of blockchain networks.
Visa’s head of crypto, Cuy Sheffield, admits that the initial stage is mostly about replacing bank wires with USDC. But as the program matures, there exists a potential to expedite both the sending and receiving process.
This move sparked quite a buzz in the crypto community, despite the early stage experimental nature of the pilot. Excitement even spilled over into non-crypto fintech circles with VC entrepreneur Nic Carter labelling the move a “huge deal”.
Alongside these developments, stablecoin’s market potential has been predicted to skyrocket to $2.8 trillion in the next five years, according to Bernstein analysts. Also worth noting is last month’s major U.S. crypto exchange Coinbase’s decision to buy an equity stake in Circle, putting them in charge of issuing and governing the USD Coin (USDC). This consolidation of power will play a key role in the launch of six new blockchains, elevating the multi-chain access of USDC up to 15.
Concurrently, data show that Solana users have dropped to their lowest in over two years amid Solana-linked FTX bankruptcy and SEC’s labelling of Solana’s Sol as an unregistered security.
This collection of developments points to a dynamic environment where traditional financial structures are continually interacting with and adapting to the burgeoning world of cryptocurrencies. Companies like Visa, Circle, and Coinbase are at the helm, navigating through these digital seas, uncovering opportunities, and setting the course for an uncertain yet undeniably intriguing future.