February 09, 2021

Credit Card Companies Will Offer Stablecoin Payments

It can be stated with confidence that payment systems are ready to use blockchain. PayPal, Square’s Cash и Visa are living proof. The platforms are working to adapt their services to the needs of crypto lovers. The motive is clear: the big players want to adjust to new market conditions. Otherwise, they risk losing most of their customers.

Alfred Kelly, CEO of Visa, believes that virtual coins will continue to be implemented to all business sectors in the future. One of the most powerful corporations in the financial sector, in turn, is ready to suit the new reality. According to Kelly, digital assets don’t threaten fiat money that is at the heart of the company's products. On the contrary, they can play a similar role. He also pointed out the high potential of stablecoins for the global commerce system. The initial steps in this direction have already been taken.

It was recently revealed that Visa will work together with Anchorage, a digital bank. The goal: to create an API to make it easier for customers to buy and sell virtual assets, such as bitcoin. According to CoinDesk, the first user of the service will be First Boulevard. What is more, Visa representatives said that the company was going to release products that will support other electronic currencies and stablecoins, as well as integrate trading.

When it comes to PayPal and Square's Cash, they have already provided the opportunity to conduct transactions with BTC. Just like MasterCard, they offer bank cards where you can store magic internet money. Cashback in the form of fiat or crypto is the icing on the cake. The result is above all expectations. Such actions attracted even more users to the market. But it wasn't always that way. Bill Harris, a former CEO of PayPal, was fundamentally opposed to the idea behind cryptocurrency. He stressed that digital money was nothing but speculative tools again and again. 

We will remind you that one of the articles in our blog already touched that PayPal supported cryptocurrencies. The platform announced its decision in October 2020. This event provoked a sharp increase in the price of digital gold. Bitcoin, Bitcoin Cash, Litecoin, and Ethereum are now available for payment. The company plans to expand the list of coins, add the ability to pay for purchases, and promote the service internationally. This will come as a pleasant surprise in the second half of 2021. 

Back to the main point, the popularity of stablecoins continues to gain momentum. There is a direct connection to the volatility protection strategy. To do away with sharp swings in the price, coins are pegged to fiat, real assets, or other cryptocurrencies. The majority is backed by the US dollar in a 1:1 ratio. The crypto community feels the need for digital currencies, the value of which is tied to traditional money. They can bring something they haven't seen yet but probably needed. At the same time, thanks to stiff competition, a more stable version of the cryptocurrency is being continuously developed and improved. As for payment systems, stablecoins will remove the boundaries between customers and the groundbreaking technology. This can facilitate the switch to the payment infrastructure of the future.

Users have long dreamed of solutions to all problems connected with the market. All they ever wanted was:

  • lower commission;
  • online payments with stablecoins pegged to fiat money;
  • an application for such operations;
  • a more transparent system.

Biggies like Visa and MasterCard have finally turned their attention to money free from government manipulation. Will their customers appreciate the advantages of stablecoins when making transactions? If yes, it'll be a huge victory for the crypto world. The only question is whether financial companies will be willing to go hand in hand with the P2P approach. The thing is that there's too much at stake for them to risk. We are talking about impressive profit based on centralized clearing. So what do you guys think? Share your opinions in the comments on Telegram or Twitter.