Visa, popular payment processor and credit card service company has through its CEO expressed its openness to support cryptocurrencies in due time. The CEO who made his stance known on CNBC’s Mad Money show; has his company look to follow the lead of fellow financial service provider MasterCard, but only when the crypto market size grows.
According to the company’s CEO Al Kelly, the Visa brand will implement cypto-friendly systems in the future if the global market moves in the direction these currencies like Bitcoin and Ethereum.
Speaking further, Mr. Kelly remarked that in the short-medium term, cryptocurrencies as an asset class are not entirely a threat to reserve currencies which form the basis of Visa’s products. He however maintained that if adoption of cryptocurrencies improve in coming years, Visa will facilitate the demand and most probably launch products or services for the asset class.
In his words;
I think there has to be some market that it becomes somewhat like fiat currency in order for us to be comfortable, if it goes in that direction, we will move in that direction. We want to be in the middle, Jim, of every payment flow in the world regardless of how it happens or what currency is behind it. So if we have to to there, we will go there. But right now, it’s more of a commodity than a payment vehicle.
In line with Mr. Kelly’s remarks, Visa will move to serve as a middleman to attract crypto users to send and receive digital assets via the Visa platform, by providing fess to the company.
Analysis of Visa’s Interest
For many enthusiasts, Visa’s interest only sums up the fact that most big financial institutions look to gain on the emerging adoption and possible benefits of early entry into the crypto sector. Others argue that Visa’s interest is irrelevant given that crypto aims at decentralization hence eliminating middle men or unnecessary intermediaries with undue fees.
The above opinions however do not entirely rule out the Visa influence. With the company’s introduction of crypto services, merchant adoption and users’ influx will thrive as people would love the idea of making payments for household commodities like coffee and food through the card platform.
Already, big wigs and Wall Street companies like Fidelity, Bakkt, Goldman Sachs and Citigroup have started offering investors cryptocurrency based services; with others sure to follow suit soon.
While the Visa Group waits on mainstream adoption, MasterCard could soon cash in on huge dominance in the crypto industry given its current blockchain-related patents and more pronounced support of cryptocurrencies.
Watch Kelly’s interview here…CNBC