Visa is set to make a triumphal entry into the crypto space thanks to the adoption of the USD Coin only (quotation USDC) as a means of payment and transactions.
The announcement made about a month ago highlights how Visa intends to accept only the USDC over market-leading cryptocurrencies such as Bitcoin and Ethereum.
Why only USDC?
Visa does not seem to want to immerse itself in the stormy waves of value volatility that mark the cryptocurrency market.
Rather, it is trying to test the waters in relatively stable spots first, with stablecoins. It believes USDC to be a stablecoin for two reasons: it is licensed by the US government and has the fiat backing of large dollar reserves.
Other unique reasons that make it the best choice for Visa is the volume of the request that exceeds $ 10 billion and the promised security that comes with regulatory compliance and routine audits.
In collaboration with Crypto.com
Visa has a little experience in the cryptocurrency world and, as such, is not trying to do it alone. It has partnered with Crypto.com, the world's largest payment platform for cryptocurrencies, to integrate both APIs for quick and seamless fiat-to-crypto transaction conversion and settlement.
This collaboration could see Visa's daily transactions increase by more than 70% from the billions it currently manages. Both companies have already implemented several classes of Crypto Visa cards that are acceptable for payment on a variety of accredited selling platforms for various everyday uses.
Will CBDCs Compete With Cryptocurrencies?
Given that CBDCs are still in their infancy, it is unclear what final form the digital currency will take or what advantage it could have over a plethora of digital currencies already available on the market.
One thing is certain, however, for many overly cautious investors, CBDCs will offer a form of centralization that ensures the safety of their assets and less volatility, unlike cryptocurrencies.
However, most of these government-backed digital currencies, once released, will eventually need to be stored in digital wallets susceptible to internet failures or device power outages, stifling transaction efforts and making them less effective than paper money.
Proponents of these innovations have advertised NFC and Bluetooth as readily available means for offline transactions, but there are still doubts about the security and protection of assets.
With one truly visible benefit (government support), CBDCs seem set to become more effective than traditional paper money and decentralized cryptocurrencies at the same time.
Who loses us? Visa or Bitcoin
Clearly, Visa has charted a different trajectory in the cryptocurrency world. He hopes to travel to the side of centrally authorized legitimacy. It is therefore pleased to lose the billions in transaction fees per second that accrue with all the other cryptocurrencies that make up 99% of the market.
For Bitcoin, Visa's indictment is just a ketchup stain on its pristine reputation. A reputation rooted in consensus and consistency. Time will wash it away.