VISA To Advance Efforts In Digital Currencies And Payments; Expanding Network-of-Networks
In a published blog post on Thursday, VISA confirmed its plans to advance its development and approach to digital currencies and payment systems. The global payment gateway has been in the digital payments scene for the past few years, in mid-June 2019, they became a founding member of the Libra Association.
After leaving the Association earlier this year due to regulatory concerns, VISA said it would be focusing on its path in digital currencies, and the latest document shows the company’s intent.
“Digital currencies offer an exciting avenue for us to continue doing what we do best: expanding our network-of-networks to support new forms of commerce.”
VISA’s digital currency strategy will be built on three pillars -: being currency and network agnostic to focus on users' demands, maintain the highest levels of security, privacy, and trust on user's data. Finally, digital currency projects must align with the company’s core capabilities.
A flourishing digital currency gateway
Over the past few years, VISA has entered into partnerships with several tops licensed and regulated crypto-based companies such as Fold App and Coinbase to provide a gateway into cryptocurrencies to their vast network of merchants globally.
Notwithstanding, a multitude of crypto companies have launched their VISA debit cards through third-parties. These companies, such as Binance and Swipe, allow users to easily buy, sell, and spend cryptocurrencies at any of the 61 million VISA merchants worldwide.
VISA aims to integrate all its features available in fiat currencies such as the VISA Fast Track, which helps startups connect to the VISA Global network easily. The company also aims at integrating the VISA Direct, which will allow users to instantly convert their cryptocurrencies, allowing them to spend their value at any VISA accepted store.
On the regulation front, VISA has been actively engaging with regulators and authorities on the concept of digital currencies and policy recommendations. The statement reads,
“We know that policy leaders and regulators continue to have questions and concerns about digital currencies on a range of issues, from consumer protection to payment resilience. We believe the best way to address these concerns is by working closely with leading companies and the public sector.”
VISA joins PayPal and MasterCard
VISA steps towards the development of digital currency solutions follow similar moves by payment providers, PayPal, and MasterCard. The online payment gateway recently wrote a recommendation letter to the European Commission praising digital currencies and hinting on its plans to develop crypto capabilities. MasterCard, a direct rival to VISA, recently approved WireX, a crypto payment gateway, to directly issue payment cards to its customers.
The race to full digital currency integration on traditional finance platforms is now in full gear.