Visa will allow some transactions to be settled with cryptocurrency
Support for the USDC stablecoin will streamline crypto-based payments.
Visa is continuing to embrace cryptocurrency. It's running a pilot in which transactions on the network can be settled with USD Coin (USDC). The company is working with cryptocurrency and payment platform Crypto.com on the project, which it plans to expand to more partners later in the year.
USDC is a stablecoin that's pegged to the value of the US dollar. That means it doesn't have nearly the kinds of wild swings in value that many other cryptocurrencies have, making it a viable option for settling payments.
This move should streamline the payment process when you want to, say, pay for pizza with a sliver of Bitcoin. Until now, buying an item with a Crypto.com Visa card would require cryptocurrency to be converted into fiat currency. A crypto wallet sends that traditional money to a bank account and those funds are transferred to Visa at the end of the day to settle the transaction.
That process increases the cost and complexity of facilitating crypto payments, as Reuters notes. Settling transactions with USDC over the ethereum blockchain removes the need to convert funds into a traditional currency.
Other major financial firms accept cryptocurrency, including Mastercard and Paypal. Many merchants allow direct crypto payments as well. Since last week, US consumers have been able to buy a Tesla EV using Bitcoin.
