Visa Blockchain Lead: Blockchain has entered the era of broadband, it is best to formulate strategies early

Visa Blockchain Head Cuy Sheffield published an article mentioning that blockchain technology is similar to the early days of the internet, and despite the current flaws and issues, it is entering a "broadband era" and will eventually evolve from obscurity to ubiquity.

Similar to the Early Internet, We Have Entered the Broadband Era Now

Sheffield believes that the current state of blockchain is akin to the early days of the internet, filled with skepticism, questions, and critics who find blockchain too expensive, slow, difficult to use, and lacking use cases.

However, just like the early internet, which has now become fast enough to transmit real-time images from space, with significantly reduced costs and even free access in many places, blockchain is also evolving. Visa has always been at the forefront of payment technology, much like how Visa saw the potential of the internet early on and played a significant role in its expansion and support for new business forms. Today, Visa also recognizes the enormous potential of blockchain networks and many possible futures.

Efficient Global Settlements

In 2021, Visa began testing the use of the stablecoin USDC and partnered with Crypto.com to facilitate cross-border transaction payments using USDC and the Ethereum blockchain, becoming one of the first major payment networks to test stablecoin settlements with USDC on Ethereum.

Recently, Visa has also collaborated with Solana for cross-border fund transfers, accelerating settlement payment innovations. Through real-time trials with issuing and acquiring institutions, Visa has successfully achieved VisaNet-authorized fiat currency payments on Solana and Ethereum blockchains, enabling Visa to process over 2,000 transactions per second. In the short term, this provides modern and convenient options for fintech issuers and acquirers to pay and receive funds from Visa's financial accounts, while also offering acquiring institutions the opportunity to provide funds more quickly to commercial users.

Sheffield mentioned that Visa's future network will involve various currencies, banking settlement channels, multiple blockchain networks, stablecoins, CBDCs, or tokenized deposits. Traditional fiat currencies and settlement channels are expected to coexist long term with tokenized fiat currencies running on this 24/7 real-time blockchain. Visa sees its role as a bridge between customers in this evolving landscape.

Blockchain-Powered Cross-Border Payments

Cross-border fund flows have long been challenging for users on both ends of transactions. Visa has made significant progress in streamlining processes, improving efficiency, and cross-border payments. Today, Visa's push payment platform, Visa Direct, covers nearly 7 billion endpoints, including over 3 billion cards, 2 billion accounts, and 1.5 billion digital wallets, facilitating same-day payments, quick insurance payouts, remittances, early wage access, instant market payments, and more use cases. In the near future, blockchain networks may become part of this ecosystem.

For many, especially in emerging economies, digital wallets are the first entry point into the digital economy. Visa is actively exploring how Visa Direct can enable customers to choose to transfer approved stablecoin funds to digital wallets via blockchain networks.

Helping Customers Understand and Use Blockchain

Blockchain technology has been around for less than a decade. With the emergence of new projects, blockchains, and use cases, complexity continues to increase. Banks and financial institutions are eager to understand how to apply this technology to better serve their customers, or they may face other risks. For example, many merchants are exploring NFTs, and central banks are researching CBDCs.

Visa is also exploring which blockchains have the potential to enhance payment rails and is helping reduce friction for end-users through pilot programs.

Finally, Sheffield reminds everyone to remember the evolution of the internet and suggests developing blockchain strategies in advance to avoid missing out on its significant impact.