- Visa is an American multinational financial services company with its head office in California, United States.
- Visa Inc has announced its partnerships with various Brazilian Banks.
- These partnerships will issue cryptocurrency cards to customers all over Brazil.
What did Visa announce?
Visa has recently announced that it is entering the Brazilian financial market to facilitate the development of cryptocurrencies. Visa intends to partner with several Brazilian banks to provide cryptocurrency cards to the customers of the respective banks and account holders.
One of the head officials at New Products in Brazil announced that they intend to bring various traditional banks together to provide cryptocurrency products. These products make it convenient for the account holders to invest into crypto assets and exchange-traded funds directly through their bank, without third-parties or intermediary exchanges.
In addition to the cryptocurrency payments cards which have undisclosed utilities, Visa Inc has also hinted at a possible integration of Bitcoin with the national payments network.
Among other traditional banks, Visa Inc has shortlisted Zro Bank, Alterbank and Rippio for the vast project. These projects are still in the earlier phases thus no deadline or ETA has been disclosed by the financial services company.
What other projects will Visa undertake?
In addition to the aforementioned projects, Visa Inc has also disclosed its other projects involving business-to-business integration, direct bitcoin payment network and emergence of Non fungible tokens.
Visa has announced that the company will be working with various institutions to develop a B2B Bitcoin transaction system. The B2B network will facilitate easy settlement of transactions between companies, corporations and institutions.
The B2B network will employ the concept of smart contracts for its operability. Smart contracts are protocols embedded in blockchain networks to execute themselves when certain predetermined questions are met. These contracts facilitate quick executions on the happening of certain predefined conditions so as to avoid human errors. Thus, institutions need not repeatedly make payments to their suppliers and creditors. They can simply set up a protocol that will execute payments if and when the predefined situations occur.
Secondly, Visa Inc also looks to integrate Bitcoin with the payments network in Brazil. This implies that people will be able to transfer Bitcoin to other accounts conveniently, simply and cheaply. Unlike debit or credit cards, no intermediaries including banks, governments or financial institutions will be involved. Bitcoin will partially replace fiat money if this system is widely adopted by the people of Brazil. The CEO of Visa inc’s branch in Brazil intends to launch the beta phase of the project sometime this year.
Finally, the CEO also added that Visa Inc is jumping into a project involving Non fungible tokens. Although additional information was not provided, Visa’s interest in NFTs is growing as the company had recently bought a cryptopunk for $165,000 in Ethereum.
How will these projects benefit Brazil?
Visa Inc has taken mighty steps to develop the cryptocurrency market in Brazil. Here are some of the ways Brazil will benefit from Visa’s projects:
- Through B2B projects and smart contracts, large institutions will be able to settle transactions easily with automation.
- The Banks will generate another revenue stream by offering cryptocurrency products to their customers.
- The customers need not approach a third-party to gain access to cryptocurrencies. They can do so with their existing traditional banks.
- Non fungible tokens will receive a huge boost in the Brazilian market following Visa’s entry in it.
- People will have a viable payment option if Visa launches its Bitcoin payments system in the country.
- The network will not levy heavy transactional fees on users while transferring Bitcoin from their account to another.
- No third-parties such as Banks, government or financial regulators will have control over Bitcoin payments.
- The Brazilian market of cryptocurrencies will rise with optimism on the pretext of development projects.
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