During the Visa Q1 talk on Thursday, Chairman and CEO Al Kelly devoted some of his comments to reaffirming the financial giant’s commitment to cryptocurrency payments and transactions, as well as explaining “how Visa thinks about cryptography in general and our approach.”
The financial services company, with assets of more than $ 72 billion as of 2019, has recently been active in cryptocurrencies, including through partnerships that enable cryptocurrency debit cards and investment in Zap, a cryptocurrency startup. In addition, Visa was previously forced to abandon the acquisition of the $ 5.3 billion payment platform Plaid due to antitrust laws.
Thursday’s comments clearly show that Visa still has long – term plans for the sector, and that the company believes it is in an excellent position to pursue these plans. According to the transcript, Kelly said: “We believe we are in a unique position to make cryptocurrencies more secure, useful and viable for payments” through Visa size, integration and brand awareness.
However, fans of Ethereum and the soaring rise of DeFi may be overshadowed by the company’s somewhat outdated view of smart contract platforms.
Kelly said Visa collects blockchain assets in two categories: “cryptocurrencies, which represent new assets such as bitcoins” and acts as a store, and “stack coins, directly supported by existing fiat currencies”, which are more commonly used for payments.
In order for coins to accumulate value, Kelly said, Visa will be used as the paper currency:
“Our strategy here is to work with wallets and exchanges, so that users can buy the currencies using the Visa credentials, or pay the Visa credentials to buy in paper currency at any of the 70 million sellers where Visa is accepted. world”.
But when it comes to stack coins, Visa is much more optimistic, describing cryptocurrencies as “a new payment innovation that can be used in global trade like any other paper currency”, stating that public blockchains can be seen as network-like payment racks. RPT or ACH.
The company also told investors that Visa will be ready to leverage any cryptocurrency that will be the dominant force in payments through relationships with wallet providers such as Crypto.com, [BlockFi], Fold and BitPanda, as well as direct integration with their payments. Network with 160 currencies.
The focus on payments reflects similar sentiments expressed by JPMorgan Chase executives, who also seem to be forgetting about Defi’s significant growth in 2020.