Visa positions itself to lead crypto payments
Things are getting really exciting in the crypto world and alot of movement is occuring to incorporate cryptocurrancy as a means of payment alongside fiat currency which presents its own problems that need to be resolved.
It sounds pretty straight forward someone has cryptocurrancy there is an item for sale instead of using fiat I provide my cryptocurrancy as payment in the same value and away I go with the new item(s).
The Problem
However, that in itself produces a number of problems and barriers for accepting cryptocurrancy as payment. For instance the markets high volatility can leave people short changed and would be a significant deterrent for shop owners in accepting cryptocurrancy as payment.
A shop owner has an item for sale at a set price that ensures costs and profits are included in the sale item. Those costs do not change but for a shop owner who accepts cryptocurrancy as payment is at risk of having it wiped and going bust in a market down turn.
On the other hand there is also the opportunity to exceed those cost, I remember a number of years ago when Bitcoin was $8,000 I bought a coffee at a local coffee store who was accepting bitcoin as payment. I thought it was fun, until bitcoin doubled, doubled again and doubled again. Great win for the trader? Not really.
For that particular trader it was abit of fun and she kept the bitcoin for HODL. I was one of 3 who'd ever used bitcoin to purchase a coffee, it also increased the cost of that coffee as I had to pay transfer fees. Settlement time also took abit so she took my word for the transaction as I went there all the time she knew I wouldn't do her out. But imagine having to wait and watch every person confirm a transaction or searching the transactions to ensure it was pending prior to handing over items. No one wants to waste their time and hold up purchases especially in the morning coffee hour rush.
Then further problems arise with what cryptocurrancy will business accept? Should it be limited or not? This would require businesses to hold multiple wallets and then are open to multiple different fees requiring listing of multiple different prices per token.
An absolute nightmare that no one wants to deal with.
Visa to the rescue
Visa has long been working behind the scenes to incorporate cryptocurrancy into its payment system and has already commenced with some traders. Just a thought but I think El Salvador's legalisation will also provide Visa the perfect testing ground to play around with payment systems and how that will work.
At current Visa is working with 25 digital wallets which indicates it is making itself available to accept and distribute multiple cryptocurrancy payments. A central wallet which is a good thing in regards to mass adoption. Having all wallets in one place makes purchasing and accepting payment easier.
It also appears that Visa will be automatically converting those tokens into stable coins to make purchases and stores instead of accepting multiple tokens will just need the one, a stable coin. That stable coin at current is USDC but Visa is preparing to work with CBDC's. This is why I'm excited about CBDC's.
As much as I love Decentralised finance and gambling on tokens it is not real world applicable to retail. Retailers aren't in the gambling business they require payment that is stable. With the issues USDT caused USDC seems to be alot safer but nothing will compare to a CBDC.
A method to be able to convert to CBDC and make a purchase all in one tap is a great way to incorporate cryptocurrancy along side fiat and will provide market stability at the retail end.
Visa Grows their staff
Visa has grown its team in cryptocurrancy space and has added some experienced leaders which will be working to enhance it's payment systems as well as including a fiat on and off ramp covering a range of tokens. You can read more Here
The move is likely to set Visa ahead of the competition and provide Visa the upper hand in the finance sector as it incorporates cryptocurrancy into its fiat business model.
I'm really excited about this move not only will it enable accessibility but also a way for players to boost local economies with increased spending.
If you make a million it is hard to spend that million and you'll get stung with alot of tax. In Australia it's a 50% capital gains tax, but if I use any cryptocurrancy to make a purchase than I pay 0 tax. This is to enable economic stimulus in retail, trades and services.
I haven't gone hard in my investment of cryptocurrancy as it is challenging to maintain adequate tax records which fall solely on me to do.
But with a method to be able to purchase and pay 0 tax, help boost my local economy I'll definitely be looking for project that I can profit off and help grow my local trades bank balances.
The future is looking wonderful!
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I don't like CDBCs. It only gives the government more control and removes any privacy we have. I prefer them to use stable coins over CDBCs if they can't solve that issue and the government can exert their control over Paypal to cut people off from the system.
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