The world’s largest payment processor, Visa, shared new thoughts on developing stablecoin settlements on its platform. According to the presentation at Starkware Sessions 2023, Visa is planning to provide access to users to convert crypto assets to fiat currencies on its own platform.
Cuy Sheffield, Head of Crypto Visa, said, “We have been testing how to actually accept settlement payments from issuers in USDC starting on Ethereum and paying out in USDC on Ethereum.”
Recently Visa’s chief executive said that blockchain-powered solutions would help improve the better payment system in upcoming years. Alfred F. Kelly Jr., the former CEO of Visa Inc., revealed Visa’s upcoming plans on Central Bank Digital Currencies (CBDCs) and private stablecoins.
As per a report from San Francisco Business Times, he said, “It’s very early days, but we continue to believe that stablecoins and CBDC have the potential to play a meaningful role in the payments space, and we have a number of initiatives underway.” And the concern is the impact of CBDC on economies and whether they could replace fiat currency.
However, the firm’s developers have admitted blockchain technology, and cryptocurrency will play a major role in alternative financing methods and cross-border payments. Moreover, the leading countries are also developing laws and regulations to introduce their own CBDCs.
Adoption of CBDC across the world
According to the Atlantic Council, all G7 nations have moved into the development stage of their CBDC. In 2023, over 20 countries plan to introduce a CBDC in their respective nations. Australia, Thailand, Brazil, India, South Korea and Russia will continue or begin pilot testing this year.
Visa and Mastercard experienced less volume of transactions in 2022
According to Tether’s tweet, it is ahead of leading traditional payment platforms like Mastercard and Visa with $18.2 trillion in transactions in 2022. Visa and Mastercard with $7.7 trillion and $14.1 trillion worth of transactions, respectively.
Stablecoins lost $3 billion within 44 Days
Since December 15, 2022, the top stablecoins have lost their market capitalization by nearly $3 billion. On December 15, the stablecoin economy was valued at $141.07 billion. After losing more than $3 billion, the current market cap of stablecoins is $138.07 billion. It fell by 0.02% in the past 24 hrs.
Few of the top ten stablecoins have lost market capitalization in the past 30 days. On Monday, the market capitalization of USDC was around $43 billion, but in Dec, the valuation was nearly $45 billion. The market cap of the Gemini dollar (GUSD) was around $571 million, down by $20 million in the past 30 days.
In mid-May 2022, the circulation of stablecoins was reduced by nearly $38 billion (USD). Still, $141.07 billion (USD) is in circulation, most of which are Tether, DAI, and Binance. Because of their decentralized structure, stablecoins face issues with deposits, which are not easy to acquire at interest rates, unlike fiat deposits.
Nancy J. Allen is a crypto enthusiast and believes that cryptocurrencies inspire people to be their own banks and step aside from traditional monetary exchange systems. She is also intrigued by blockchain technology and its functioning.
Source: https://www.thecoinrepublic.com/2023/02/06/the-next-move-for-visa-stablecoin-settlement/