International credit and debit card company announced today that it will closely integrate Circle's USDC stablecoin into its massive network.
Well What is a Stablecoin?
Stablecoins are cryptocurrencies that attempt to peg their market value to some external reference.
Stablecoins may be pegged to a currency like the U.S. dollar or to a commodity's price such as gold.
Stablecoins achieve their price stability via collateralization (backing) or through algorithmic mechanisms of buying and selling the reference asset or its derivatives.
Visa today officially announced a partnership with Circle Internet Financial that it will be integrating circle's USDC stablecoin backed by US dollar.
Why USDC and Not TETHER?
Visa has gone for USDC coin and not tether or other stablecoins its because other than USDC other stable coins are made by decentralized community but USDC is controlled by a centralized company CIRCLE.
Uses Of Stablecoins?
Traders use Stablecoins to quickly switch to fiat. It is often not possible to quickly switch from Bitcoin to Dollar or Euro on an exchange. To do this, the Bitcoin must first be withdrawn and converted to Euros via a broker. But in the fast-crypto market, you need to be able to trade fast. If a trader expects the price of Bitcoin to drop, he can buy USDT at the current price, for example.
Example: 1 BTC currently costs exactly 8000 USD, and you expect the price to drop. Take a position in a Stablecoin and convert 1 BTC to 8000 USDT. If the price drops to 7000 USD, then you can buy 1.14 BTC again with your 8000 USDT. This means a 0.14 BTC profit.
Stablecoin in VISA
For most people stablecoins is a first step into the crypto market as it helps them from high volatility of cryptos.
By Integrating stablecoin into its network of over 60 million Visa has now taken a major step in the growth of stable coin.
Unlike PayPal they wont provide custodial service for the digital currency but rather work with Circle and integrates circle with it payment ecosystem and also into its platform. In future, it also hopes to offer its corporate customers corporate card to spend its money in USDC.
“This will be the first, corporate card that will allow businesses to be able to spend a balance of USDC,” said Cuy Sheffield, head of crypto at Visa, adding that, “We think that this will significantly increase the utility that USDC can have for Circle’s business clients.”
He Also Added that , “Blockchain networks and stablecoins, like USDC are just additional networks. So we think that there’s a significant value that Visa can provide to our clients.”
Summary
By integrating stablecoins into its network Visa is not only helping USDC And its parent company Circle it is helping the crypto community as a whole to pave the wave for mass adoption and eventually replace fiat currencies.
It will also greatly help the native blockchain stablecoins are running in USDC case it is ethereum. As use cases increase demand for Ethereum spikes and also propell its price further.
I hope this article is helpful to u, I would like to hear your thoughts on this. If u have any doubt about investing or if u want my thoughts about a particular project pls comment down below.
Affiliate Links:
Support Me by joining any one of the following its all free to start
publishox :- Y U no sign up yet?? Earn crypto for writing AND reading!
uhive:- like twitter and facebook but earn crypto
presearch :- Like Google search, but earn crypto! (Referral bonus: 25 free PRE tokens!)
Blockfi:- lend your digital assets and earn compounding interest on them.
Crypto.com:-stake 2500cro tokens and we both get $25 bonus
netbox.global :- like google chrome, but earn NBX crypto!
miningcompany.ltd :- one stop mining platform for all cryptos and their plan is also free to start
Cryptotab- I use it to mine bitcoin on my mobile and pc.
Thank you for visiting for more interesting news like this pls subscribe to the blog.
Nice article