Stablecoins and CBDCs would possibly play ‘significant function’ in funds — Visa CEO


The chief govt of bank card large Visa stays assured that blockchain-powered options could be built-in into its providers and choices to energy the subsequent technology of funds.

Speaking on a name at Visa’s annual stockholder assembly on Jan. 24, outgoing CEO Al Kelly — who will formally step down on Feb. 1 — briefly shared the agency’s plans for Central Bank Digital Currencies (CBDCs) and personal stablecoins.

According to a Jan. 24 report from San Francisco Business Times, Kelly stated:

“It’s very early days, but we continue to believe that stablecoins and Central Bank Digital Currencies have the potential to play a meaningful role in the payments space, and we have a number of initiatives underway.”

“We’ve had an immaterial amount of investments in crypto funds and companies as we seek to invest in the payments ecosystem,” the outgoing CEO defined.

Kelly additionally confirmed that Visa’s stability sheet hasn’t been impacted by a number of the “high-profile failures” that rocked the cryptocurrency area in 2022:

“We’ve had no credit losses related to these failures […] In everything we do, please know that we’re extremely focused on maintaining the integrity of Visa’s payment system and the payment system in totality and of course, the reputation of our brand standing for trust.”

Over the years, Visa has labored on quite a lot of crypto-related initiatives.

Its analysis staff started engaged on a blockchain interoperability undertaking in September 2021, named the Universal Payment Channel (UPC) initiative, the undertaking was designed to ascertain a “network of networks” for CBDCs and personal stablecoins to cross by means of varied cost channels.

Visa hasn’t offered an replace on the UPC in over 12 months, nonetheless.

More not too long ago, the cost large introduced on Dec. 20, 2022, that it was chalking up a plan to permit automated payments to be paid out from a consumer’s Ethereum-powered pockets.

Visa has additionally rolled out a number of “zero fee” cryptocurrency debit playing cards of late together with a now-terminated settlement with FTX and a partnership with on Oct. 26, 2022, which continues to be in impact.

A pattern Visa-FTX debit card earlier than Visa in the end terminated the partnership settlement. Source: Yahoo Finance.

While Visa’s 2022 annual report solely included information up till Sept. 30 — about 5 weeks earlier than FTX collapsed — extra data could also be revealed in Visa’s Q1 2023 earnings name on Jan. 26.

Related: Bitcoin Lightning Network vs Visa and Mastercard: How do they stack up?

Visa President Ryan McInerney will formally exchange Al Kelly as CEO on Feb. 1, whereas Kelly will stay on board as govt chairman.

McInerney seems to be equally, if no more bullish on blockchain-powered cost options too.

In an interview with Fortune in November 2022, McInerney stated Visa nonetheless has “$14 trillion of cash out there being spent by consumers that can be digitized” and that they’re persevering with to discover the place crypto funds could also be finest leveraged.

Dejar respuesta

Please enter your comment!
Please enter your name here