In massive news for the Cryptocurrency space, Visa has confirmed they are testing $USDC settlements on the Ethereum blockchain.
https://www.coindesk.com/visa-uses-anchorage-to-settle-usdc-transaction-on-ethereum-in-further-crypto-push
https://techcrunch.com/2021/03/29/visa-supports-transaction-settlement-with-usdc-stablecoin/
For those not familiar with the traditional banking system, the move paves the way for payment processors like Visa to settle funds near-time, compared to batching and waiting days for final settlement.
“Typically, a payment can take anywhere from 24 hours up to three days to process the payment. The reason for this time is because the transaction process goes through several steps to get from one bank account to another”
Source: creditcardprocessing.com
While it’s early days for stable coin settlements, blockchain may prove its ability to disintermediate value extracting organisations from the transaction flow. Think forward to the possibilities for Visa or any other payment processor. Payment companies can receive funds directly from a customer in stable coins on a blockchain, store and eventually settle with the merchant, using crypto or government FIAT currency. As adoption grows, merchants could choose to keep the currency in blockchain-based stable coins, cutting out financial institutions or settle traditionally via banks. Ultimately the choice lies with the business, depending on what they value.
Crypto and blockchains eventually become the backbone of the new financial internet-based system. Such a change opens the door for new trading options, new business models and overall productivity improvement across the business world.
If you’d like to know more about the possibilities, connect with us!
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