Stablecoins & CBDCs can Play a Meaningful Role in the Payments Space

Last year, the crypto sector was shaken broadly by bankruptcies

In a recent stockholder meeting, the company’s CEO discussed the role of blockchain-based technologies in the payment space.

During his address, Al Kelly discussed the company's Central Bank Digital Currency (CBDC) and private stablecoin plans. Kelly added that “we believe that stablecoins and CBDC have the potential to play a significant role in the payments space. Also, we have a number of initiatives in the works.”

The company's CEO noted that “we've made limited investments in crypto funds and companies as we strive to invest in the payments ecosystem.” He added that the high-profile failures that rocked the cryptocurrency market in 2022 had no effect on Visa's balance sheet.

Visa is a multinational financial services firm headquartered in San Francisco. It enables electronic funds transfers all across the world. Currently, the company allows users to purchase cryptocurrencies and NFTs using Visa cards.

Visa’s Crypto Initiatives

In September 2021, Visa's research team began working on a blockchain integration project. The initiative was dubbed the Universal Payment Channel (UPC).

The project's goal was to create a "network of networks" for CBDCs and private stablecoins to transfer through different payment methods. However, Visa has not released an update on the UPC in almost a year.

More recently, on December 20, 2022, the payment giant announced a proposal to allow automated bills to be paid out of a user's Ethereum-powered wallet. Visa has also recently launched various "zero fees" cryptocurrency debit cards. The card was launched in partnership with Blockchain.com in October 2022.

Visa Remains Unaffected by Crypto Collapses

The meltdown of the Terra luna ecosystem & crypto exchange FTX significantly tumbled the crypto industry last year. However, Visa was able to safeguard itself and escaped significant losses. Kelly elaborated on the same, saying,

“With a series of high-profile failures in the last year, the crypto industry has undoubtedly been in the news. We have suffered no credit losses as a result of these failures.”

Meanwhile, recent reports reveal that Visa's current CEO will be stepping down soon. As per reports, the new CEO, Ryan McInerney, will take over on Feb. 1, while Kelly will stay as executive chairman.

What do you think about the Visa CEO's opinions on emerging technologies like stablecoins and CBDCs? Do you believe Visa's new CEO will be equally bullish about these technologies? Please share your valuable thoughts in the comment section below.

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