Visa, a giant in the payment industry, has embarked on a groundbreaking endeavor at the Web Summit held in Lisbon. The company has introduced a system allowing rapid payments to freelancers and digital service providers using stablecoins tethered to the U.S. dollar. This approach, through a pilot initiative with currencies like USDC, aims to remove the lag commonly found in cross-border transactions. Organizations participating in the program can start payments in their local currency while recipients benefit from receiving funds in stablecoin wallets almost instantaneously.
How Does This New System Work?
Visa’s initiative seeks to speed up the income channeling process in the global digital market, with a primary focus on freelancers and gig workers. Traditional banking systems often involve lengthy transfer times, a challenge Visa addresses by deploying public blockchains. This method not only ensures faster transactions but also adds a layer of transparency and traceability.
“The implementation of stablecoin payments facilitates quick and easy access to funds for everyone, regardless of geographical location,” emphasized Chris Newkirk, who leads Visa’s Commercial and Money Movement Solutions.
Visa’s Long-term Strategy
Visa is planning to broaden this pilot application, which builds upon their stablecoin pre-financing tests initiated earlier in September. These preliminary tests allowed businesses to pre-fund using stablecoins, but the new system now includes end-users. Such inclusion represents a fusion of conventional finance with blockchain technology.
By 2026, Visa envisions an expansion to a global scale, aligning with a maturing regulatory environment and increasing demand from institutions. The company aims to integrate stablecoin transactions into existing card frameworks, thus bridging its operations across more than 200 countries with the burgeoning digital economy.
Experts view Visa’s strategy as a step towards embedding blockchain into their financial operations. The push for real-time payments using stablecoins is nearing global implementation, changing how financial transactions are conducted.
Key developments from Visa’s recent initiatives include:
- •Direct payments to freelancers using stablecoins improve speed.
- •Transactions are recorded on blockchains for better transparency.
- •Visa aims to expand globally by 2026, integrating within traditional systems.
Moving forward, Visa’s venture into stablecoin payments signifies a notable leap in the intersection of traditional finance and blockchain technology, potentially reshaping global payment infrastructures. As regulatory frameworks evolve, the seamless merger of digital currencies within existing systems could become a standard, transforming financial landscapes worldwide.