Cuy Sheffield said VISA is building a “muscle memory“for settlements that allow customers to convert crypto assets and fiat currencies on the platform. Sheffield added that the company is currently testing high-value settlement payments. He stated:
“We have been testing how to actually accept settlement payments from issuers in USDC from Ethereum and pay in USDC on Ethereum. So these are high-value settlement payments.”
The payments giant has already been working on’Ethereum integration to facilitate automatic payments. In addition, VISA is also investing heavily in global settlements between digital assets and fiat currencies. This is an area in which the company wants to create a “muscle memory“. Cuy Sheffield added that, just as dollars and euros can be converted, the VISA platform should also be able to convert traditional dollars into tokenized dollars, such as stable currencies.
If this happens, it could significantly boost the use of stablecoins for global payments using the payments network. This would lead to massive adoption of stablecoins and other digital assets.
VISA plans to overcome SWIFT challenges
According to the latest developments, VISA plans to integrate blockchain technology into its existing network. However, all settlements still take place on the SWIFT system, a nonprofit cooperative society formed by bankers from Europe. S’speaking to Cointelegraph, Cuy Sheffield explained:
“We set everything on Swift, so we can’t move money as frequently as we would like, because there are a number of limitations that exist in these networks. And so we have been experimenting, we have been announcing publicly. We have been testing how to accept settlement payments [avec des monnaies stables]”.
VISA believes that stablecoins and central bank digital currencies (CBDCs) could play an important role in the global payments landscape of tomorrow. Sheffield added that VISA is working to extract value from existing bank rails and rebuild them on blockchain rails using stablecoins.