According to Reuters, Visa, in cooperation with the digital asset bank Anchorage, completed the first transaction this month. The transaction was carried out through the Ethereum network, using the USD Coin (USDC), a stablecoin that has a locked exchange rate with the US dollar.
It is the first major payment intermediary to use stablecoins technology to settle cross-border transactions. In the first phase, Visa will work with the Crypto.com exchange to implement its first non-government currency trading program.
Until now, when someone used a Visa Crypto.com card to pay, it was linked to the user’s account at the exchange and converted the digital currency into a government fiat currency. They then had to deposit fiat in a bank account to connect to Visa. With stablecoins technology, however, costs and complexity are reduced. Visa will use Ethereum’s blockchain and USDC, eliminating the need to convert cryptocurrency to fiat to settle the transaction. As they explain, they will be able to move funds without the risk of reversal, without delays, without the cost of SWIFT, ACH.
The Soros Fund in favour of Bitcoin
One of the most well-known and successful investment institutions, the Soros Fund, is in favour of Bitcoin now. As the head of the investment office of Soros Fund Management, Dawn Fitzpatrick said, they find the crypto infrastructure very interesting, so they invest in them.
Bitcoin may once have been considered a marginal asset, but that is no longer the case, Fitzpatrick said. A key reason is the fear of a devaluation of the dollar, due to the increased money supply over the last 12 months by 25%. From what he explained, he sees Bitcoin as a commodity that has the advantages of ease of storage, transfer and the finite limit of currencies. He believes that these are the reasons why many have switched from gold to Bitcoin.
It’s not just the Soros Fund though. According to Arcane Research, institutional investors hold 800.416 Bitcoin or 4.3% of the existing $46 billion currency. Most importantly, more than 100.000 Bitcoin have been absorbed since the beginning of the year.