The cryptocurrency landscape is constantly evolving, and nothing highlights this progression as much as the recent revelations by a Visa executive. Speaking on a panel at the Blockchain Economy Dubai Summit, Visa’s VP head of Innovation & Design, Akshay Chopra, unveiled the robust role crypto cards played in 2021’s market activity. This axis between traditional finance and digital currencies has become a definitive driver for crypto adoption.
The scepticism still surrounding the widespread usage of cryptocurrencies, especially for everyday transactions such as buying a cup of coffee, is a hurdle digital assets grapple with. Seeking to eliminate this challenge, Visa entered into partnerships with seventy-five of the largest crypto exchanges in 2021, allowing the issuance of Visa cards. This play created a bridge connecting nearly 80 million Visa merchants with crypto-friendly customers, generating a staggering “$3 billion of payment volume.”
Institutional finance has not ignored the rise of the Web3 ecosystem. Indeed, routine payment settlements between financial establishments is ripe for disruption. On this front, Chopra pointed out the limitations of existing systems, such as SWIFT, which isn’t available around the clock. He emphasized the need for innovation within this space, proposing the use of blockchain-based solutions as an efficient alternative.
Toward this, Visa experimented with Circle, leveraging USD Coin (USDC) to allow crypto exchanges to settle payments. An advantageous proposition considering it’s cheaper than traditional methods, works non-stop, and pivots on the security and transparency of the Ethereum blockchain.
However, regulations cast a long shadow, deterring mainstream finance from completely embracing crypto-based payments. While regulatory backlash has curtailed progress in some regions, places like the United Arab Emirates stand out. Chopra admires proactive regulatory foresight, where comprehensive frameworks are developed with input from industry stakeholders to pave the way for future possibilities.
Crypto funding has certainly declined in the past, making the announcement of a $100M fund for Asian blockchain startups all the more spectacular. Hong Kong-based crypto-focused venture capital (VC) firm CMCC Global is behind this move. Considering the crackdown on crypto in certain jurisdictions, Asian firms are finding themselves in favorable positions as projects seek more welcoming territories for operations.
Amid the twists and turns of the crypto industry, it is clear that both traditional finance and regulatory frameworks will play pivotal roles. Whether it’s the widening of crypto usage through partnerships or the welcoming of crypto-based businesses via accommodating regulations, these dynamics point towards intriguing developments for all invested in the world of digital currencies.
Source: Cointelegraph
