- Visa revealed its intention to settle payments using USDC.
- Sheffield explains the constraints and why Visa started exploring stablecoin payments.
- Ethereum crypto wallet customers may withdraw cash without signing each transaction.
According to recent reports, Visa, a leading payment technology company, has announced plans to test the acceptance of settlements payments in USDC, a stablecoin built on the Ethereum blockchain.
Additionally, by capitalizing on the speed, efficiency, and security offered by decentralized technology, the firm plans to completely alter the way big-value settlements are conducted
We’ve been testing how to actually accept settlement payments from issuers in USDC starting on Ethereum and paying out in USDC on Ethereum. So, these are large value settlement payments.” Cuy Sheffield remarked during a conference fireside conversation.
Sheffield further elaborated on the limitations and explained why Visa has begun exploring the stablecoin payment mechanism, saying,
We set all over Swift, so we can’t move money as frequently as we’d like because there are a number of limitations that exist in those networks. And so, we’ve been experimenting, we publicly announced. We’ve been testing how to actually accept settlement payments [with stablecoins].
As pointed out by Visa’s latest proposal, users of Ethereum crypto wallets may “draw” cash without needing to sign off on each transaction individually. This implies that with Visa’s help, customers may set up recurring payments sent from their cryptocurrency wallets.
While this is currently impossible on the Ethereum network, a proposal termed “Account Abstraction” aims to change that. As a consequence, user accounts on Ethereum would be able to behave like intelligent contracts and include timed operations.
In conclusion, Visa’s decision to explore USDC settlements on Ethereum aligns with the trend toward greater digital asset adoption in the financial industry. The move is expected to increase the efficiency of cross-border transactions, enabling faster and more secure payment settlements.