Visa Inc, the world’s largest retail electronic payments network, has begun working on integrating cryptocurrency services into traditional banking systems in Brazil.
Eduardo Abreu, Visa’s Vice President of New Business in Brazil, had a recent interview with a local media outlet, Seu Dinheiro. The executive disclosed that Visa corporation is working on integrating cryptocurrencies into its platform for both payments and a store of value.
Abreu talked about the development and said that Visa is working with several fintech firms in Brazil to bring cryptocurrency payments cards to the local market. The executive disclosed that the corporation is developing applications (APIs) to connect traditional banks with cryptographic products.
The VP of VISA further said that the company is working with several Brazilian companies, including Zro Bank, Alterbank, and Rippio, to create cryptocurrency cards and allow users to link their accounts to such crypto services via their bank accounts.
Abreu also revealed that Visa is developing a business-to-business blockchain that will allow local fintech firms to settle payments using smart contracts. And such a blockchain system would enable financial providers to verify deposits and payments and therefore enhance transparency.
The executive mentioned that the blockchain system is already in testing phases with some of their clients and said that Visa would make further announcements soon regarding the project.
Abreu stated that Visa would start testing direct crypto payments in Brazil shortly to explore how the blockchain system enables the transfer of Bitcoin and other major cryptocurrency transactions into other accounts such as bank accounts.
Unlike conventional cryptocurrency cards, which requires a mediator to convert Bitcoin for fiat money, this system would eliminate the need for an intermediary.
Although the Visa executive has not given a specific timeline for the launch, it is expected within the next few coming months. Visa aims to bridge a gap between cryptocurrencies and the existing banking system in a country with rising crypto adoption.
In the interview, Abreu stated that greater adoption would require integrating traditional banking activities within the cryptocurrency ecosystem so that customers can transact with crypto and fiat in the same environment.
“The great advantage of adopting Bitcoin is, without a doubt, its ease. Without needing to exchange a fiat currency, there is an optimisation of exchanges when using Bitcoin,” said Abreu.
Visa Cryptocurrency Solutions
Visa, which already provides180 currencies on its platform and aims to leverage its 170 million customers across the world, wants to be a leader in the booming crypto industry.
In March, the payment giant announced plans to work with Bitcoin wallets to enable the conversion of BTC to fiat currencies, marking a milestone for the 62-year-old company.
Visa is currently working with several crypto firms such as Anchorage, Crypto.com, and others, issuing Visa-powered cards for cryptocurrency payments and transactions.
Visa wants to eliminate the hassle of requiring customers to convert their crypto holdings into fiat currency before settling their accounts on the Visa network. The firm plans to expand the feature to other members of its payment networks and other digital currencies later this year.
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