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Visa begins USDC cryptocurrency payments pilot program

Visa has announced that it will begin to allow use of cryptocurrencies on your network to settle payments. It is an important move for the global financial giant, to become one of the first traditional financial institutions to start accepting cryptocurrencies as a form of payment settlement.

News of Visa’s crypto pilot sent global crypto markets skyrocketing, pushing Bitcoin to a new all-time high on top of the positive news.

Visa begins cryptocurrency payment settlement pilot program

The company will begin a pilot test on its vast payment network using US Dollar Coin (USDC). It is a stable cryptocurrency whose reserves and issuance are pegged at 1: 1 in real US dollars.

Visa is working in collaboration with Crypto.com, a major cryptocurrency exchange, and Anchorage, a digital asset bank, to start accepting cryptocurrency as payment on their networks using the blockchain Ethereum.

Some form of payment in kind already exists between Crypto.com and Visa. The Crypto.com Visa card allows cryptocurrency users to make payments from their card as they normally would. Currently, that process involves Visa partners settling payments in fiat currency, which is converted to or from cryptocurrencies.

Every transaction comes with a conversion fee, which adds expenses to the total cost.

The Visa announcement means that Crypto.com Visa users will now be able to settle their payments in USDC directly, without having to pay the additional conversion fee. The result is that more users can treat their cryptocurrency holdings, specifically USDC, like a regular currency without worrying as much about painful conversion fees.

Visa is not the only major fiat payments network starting to enter the world of cryptocurrencies. Mastercard, PayPal, and other payment processing companies have recently issued statements related to the introduction or integration of cryptocurrencies. US PayPal users can now use Bitcoin with their regular accounts.