Key facts:
Visa confirmed its intention to collaborate in the adoption of cryptocurrencies as a means of payment.
New payment options will be developed with cryptocurrencies in Mexico, Colombia and Peru, among others.
The multinational payment processing and card issuing company Visa has revealed that it is “intensifying efforts” to offer more cards that operate with cryptocurrencies. To that end, it adds alliances with various fintechs in Latin America to provide this service, which would be added to several options that already exist in the market.
According to official statement of Visa, these intentions to have more cards compatible with cryptocurrencies are based on the fact that the interest and Adoption Of Digital Currencies “Continues To Rise Globally” by consumers.
To fuel that growth, Visa is “substantially ramping up” its cryptocurrency efforts in Latin America and the Caribbean. This includes, according to the brief, “new local card-based alliances and other initiatives that present opportunities for businesses, governments and consumers to access the future of digital money.” The intention is to increase connectivity, scale and security in relation to this type of payment.
In addition to consumer interest and adoption, Visa also highlighted increased investment in the cryptocurrency ecosystem in the region.
The cards with cryptocurrencies that are already available
Mexico, Colombia and Peru are some of the countries that Visa is targeting to present more cards and infrastructure and consulting services. The new ideas and associations that the multinational has in mind for Latin America would be added to some products that already exist in the market.
For example, the Crypto.com exchange has had its Visa international debit card since the end of last year. Likewise, in Argentina, the cryptocurrency broker Lemon Cash launched its Visa prepaid card in November 2021. The company also has alliances with Satoshi Tango in Argentina and Alterbank and Zro Bank in Brazil, he explained.
In general terms, what unites all these cards is that allow you to pay in any store with the balance (in cryptocurrencies or in fiat money) that the user has on the platform. In addition, several of them offer a cashback, that is, a reward in cryptocurrencies for each time the card is used.
Visa also targets CBDCs
Apart from the development that it pursues in conjunction with companies in the technology sector, Visa has ratified its intention to collaborate with the governments of different countries in the creation of Central Bank digital currencies (CBDC). One of these countries is Brazil, whose Central Bank is actively working with this and eight other companies to design a CBDC prototype.
The company is focused on enabling the implementation of these digital currencies “with safe, convenient and reliable technologies that can be seamlessly integrated into the existing payment ecosystem.”