Visa Inc said on Monday it will allow the use of the cryptocurrency USD Coin to settle transactions on its payment network.
It has launched the pilot program with payment and crypto platform Crypto.com and plans to offer the option to more partners later this year.
The move comes after major finance firms including BNY Mellon, BlackRock Inc and Mastercard Inc have embraced some digital coins
How it will work?
The cryptocurrency wallet will deposit traditional fiat currency in a bank account, to be wired to Visa at the end of the day to settle any transactions, adding cost and complexity for businesses.
Visa’s latest step, which will use the ethereum blockchain, strips out the need to convert digital coin into traditional money in order for the transaction to be settled.
Bitcoin rallied following the announcement
Bitcoin, the most popular crypto coin, jumped to a one-week high on the news, rising as much as 4.5% to $58,300 and heading back toward a record-high above $61,000 hit earlier this month.
Comment from head of crypto at visa
“We see increasing demand from consumers across the world to be able to access, hold and use digital currencies and we’re seeing demand from our clients to be able to build products that provide that access for consumers.”
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