Visa creates service to advise financial institutions on cryptocurrencies

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It’s a new era. The credit card giant Visa is now in the cryptocurrency business. However, they won’t buy and sell yet. Its new division will focus on providing advice to everyone. From retail clients to financial institutions, even central banks can get information from Visa’s crypto experts. Many people still appreciate the contribution of traditional institutions, even if they do not have the antecedents. So this appears to be good news for the crypto industry as a whole.

Related reading | As Amazon takes on Visa, does cryptocurrency offer the real alternative?

Reuters informs:

“Visa’s services include training institutions on cryptocurrency, the ability for customers to use the payment processor network for digital offerings, and assistance with managing backend operations.”

And Visa promises:

“Harness the potential of crypto with a pioneer in global payments. In order for crypto to realize its full potential, we connect crypto and blockchain networks to our trusted global payment network. And we drive innovation to deliver even more access and value to the crypto ecosystem. “

Visa CFO Still Doesn’t Understand Bitcoin

In a strange move, given that they offer expert advice on cryptocurrencies, Visa’s CFO said the most serious thing. Vasant Prabhu told Reuters:

“If the price is going to fluctuate from $ 60,000 to $ 50,000 in a matter of hours, it’s a very difficult thing for a trader to accept (bitcoin) as a currency. I don’t know if cryptocurrencies like bitcoin will ever be a medium of exchange. Stablecoins will.

Bitcoin is already a medium of exchange. It is legal tender in a whole country. It’s a process, but traders will quickly learn the benefits of holding a deflationary currency instead of an inflationary currency. If Prabhu doesn’t understand this, how does he expect his clients to take his advice seriously?

BTC price chart for 12/09/2021 on Gemini | Source: BTC/USD on TradingView.com

What Did Visa’s Crypto Research Department Discover?

As an introduction to the company’s crypto research department, the company says, “For financial institutions looking to attract or retain customers with a crypto offering, retailers looking to dig deeper into NFTs or banks As powerhouses exploring digital currencies, understanding the crypto ecosystem is a vital first step. “

As a first demonstration of power, they produced “The cryptographic phenomenon: attitudes and uses of consumers.A report which, among other things, revealed the following:

  • “Almost universal knowledge of cryptocurrency at 94% worldwide among adults with discretion over their household finances. “
  • “Almost one in three savvy consumers already own or use a cryptocurrency, with the majority saying their use has increased in the past year (62% of owners) and two-thirds expecting them to increase the share of their invested assets. in crypto over the next 12 months (66% owners).
  • “In emerging markets, ownership (37%) and curiosity (27%) of cryptocurrency is even more pronounced. “
  • “The main drivers for owning and using cryptocurrency are to participate in the ‘financial path of the future’ (42% of owners) and to create wealth (41% of owners)”
  • “Most cryptocurrency owners would be interested in purchasing cryptocurrency from their bank (85% of owners)”
  • “More than a third of current owners say they plan to switch to a bank offering crypto products in the next 12 months (39% of owners).”
  • “The vast majority of consumers who use cryptocurrency express interest in crypto-linked cards (83% active owners) and rewards (86% active owners).”

Related reading | Visa is building a network of payment channels on Ethereum

Conclusions to avoid confusion

Even though the Visa study seems biased on what its customers need to hear to acquire their new service, the results are interesting. It is helpful to see what a company’s research department with these kinds of resources can offer. Hope they keep coming. And also hope that Visa’s CTO reads “The Bitcoin Standard” because that quote was embarrassing.

Featured Image: Visa and Bitcoin, taken from their site | Charts by TradingView


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