With over $10 billion in transactions, VISA is considering adding rewards points for crypto purchases, settling in USDC, and expanding its ecosystem.

Since last year when PayPal incorporated cryptocurrency into its payment system, the role of cryptocurrency in the financial system has become increasingly important. Payment giant VISA stated in an official article that in the first half of 2021, the consumption of cryptocurrency cards issued by VISA exceeded $1 billion, indicating that more and more people are exploring the payment functions of cryptocurrencies.

Settling with USDC to Drive Payment Revolution

According to reports, in addition to expanding its ecosystem, VISA's roadmap includes plans to increase the use of points/rewards for using crypto financial cards, such as frequent flyer miles, hotel points, etc. Ultimately, the goal is to integrate the crypto world with traditional finance, enabling settlements directly in the US dollar stablecoin USDC to drive a payment revolution.

Cuy Sheffield, Head of Crypto at VISA, told the media outlet CoinDesk:

"The next phase is making it easier for our users to interact with crypto financial cards, including making it easier for users to apply for crypto financial cards or settle with USDC. In fact, we've spent a lot of time thinking about how to leverage VISA's services to build a bridge between the crypto ecosystem and the traditional financial network."

However, VISA currently does not intend to include cryptocurrencies as part of its asset allocation. This is because the currencies the company holds on its balance sheet are operational funds of the company or fiat currencies that need to be paid to users, so the high volatility of cryptocurrencies is not suitable for VISA's asset allocation.

A survey by Mastercard indicated that 40% of millennials will start using cryptocurrencies next year, and 75% stated that they are willing to start using cryptocurrencies once they have a better understanding of them.

On the other hand, there are currently billions of dollars in cryptocurrency assets lying in exchanges or regulated wallets, which is why major payment giants are actively seeking to collaborate with crypto startups or exchanges. Nevertheless, a payment revolution may be underway.