Payment company Visa is trying to create a “muscle memory” for settlementswith the objective of allow clients to convert digital assets into fiat currencies on their platformaccording to the head of the company’s cryptocurrency division, Cuy Sheffield, at the StarkWare Sessions 2023.
“We have been testing how to actually accept USDC issuer settlement payments by starting on Ethereum and paying in USDC (USDC) on Ethereum. So these are high-value settlement payments,” Sheffield noted in an informal chat at the event. The Cointelegraph team is in Tel-Aviv covering the two-day Ethereum community conference.
According to the executive, global settlement with digital assets and fiat currencies is one avenue Visa is investing in. Specifically, he stated that:
“That has been one of the areas where we want to build muscle memory. Just as we can convert dollars into euros in a cross-border transaction, we should be able to convert between tokenized digital dollars and traditional dollars.”
The payments giant has been exploring how to incorporate blockchain technology into its existing network to move money faster.but settlements are still carried out in the Society for Worldwide Interbank Financial Telecommunication, or SWIFT system, a non-profit cooperative society formed by European bankers with the purpose of facilitating secure and standardized communication of transactions between its members.
. @cuysheffield and @visa have fell into the rabbit hole of Account Abstraction!
This is huge! pic.twitter.com/CFniLLBq5C
— Starknet-Ecosystem.com ✨ (@StarkNetEco) February 5, 2023
@cuysheffield and @visa have fallen down the Account Abstraction rabbit hole!
This is huge!
“We set everything up on Swift, so we can’t move money as often as we’d like because there are a number of limitations that exist on those networks.s. And so, we’ve been experimenting, we announce it publicly. We have been testing how to accept settlement payments [con stablecoins]Sheffield explained.
Speaking recently at Visa’s annual shareholder meeting, former CEO Al Kelly briefly shared the company’s plans for central bank digital currencies (CBDCs) and private stablecoins, stating that “stablecoins and central bank digital currencies have the potential to play a significant role in the payments spaceand we have several initiatives underway.”
Sheffield confirmed the company’s vision on blockchain technology and digital assets. “We’re thinking a lot about how to take some of the value that Visa provides in the known banking lanes, with other existing ways, in a rebuild in the blockchain lanes, using stable boards. If we think there are great opportunities in that area, it’s just how to wait”.
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