- Payment Services Firm, Visa Starts Expanding its Cryptocurrency Payment Options and Offering Banks Blockchain Solutions
- Ripple and XRP Might be Annihilated if Visa’s Plans Succeed and Other Traditional Fintech Institutions Follow Their Lead
XRP News Today – Ripple is the most popular blockchain network to make a move in the cross-border financial system. The goal of the Silicon Valley-based firm has been to take up a significant market share from companies like SWIFT, Visa, Mastercard. Ripple already has the technology to offer low cost and instant cross-border remittance. The XRP token and their On-Demand Liquidity solution are already doing this efficiently. The only significant hindrance preventing global adoption at this time is trust. For Ripple’s technology to work, they need to convince banks and other financial institutions to abandon their existing system and adopt a new one. This isn’t easy to do especially when the company proposing the change is operating on relatively new technology, blockchain.
XRP News Today – Visa Increases Interest in Cryptocurrencies and Blockchain Technology
As stated above, getting financial institutions to use their product has been changeling for Ripple. Now, some of these financial institutions are branching into blockchain technology and boycotting Ripple. It would be easy for a legacy institution that is 100 years old to convince fellow institutions to try something new than for a blockchain-based company that is less than a decade old.
In a recent press release, Visa’s senior director and head of cryptocurrency Cuy Sheffield said that they are advancing their work in the cryptocurrency space. While Sheffield didn’t tell the public when this project will take place, he noted that the research is progressing smoothly and will continue into next year. Sheffield said that Visa is currently working closely with central banks across the globe on creating CBDCs. They aren’t just targeting central banks, they are also targeting other financial related companies that are interested in private stablecoins.
Sheffield said that they have seen that the mass adoption of CBDCs isn’t easy. There will be technical challenges along the way. He said that they must look for a way to make offline digital payments more secure. All the challenges that come with CBDCs also affect privately issued stablecoins. Things like resilience and accessibility are still difficult. In line with what Sheffield said, Terry Angelos, the Senior Vice President and Head of Fintech at Visa said that they are planning to partner with more companies that are interested in cryptocurrencies. He referred to their partnership with Coinbase as well. So far, they have successfully onboarded 25 companies and over 60 million clients who accept cryptocurrency-based payments. Sheffield concluded;
“We have close relationships with a number of the leading crypto wallets and exchanges, and we help them access our network of over 60 million merchants.”
Ripple will need to up their game if they are to compete with Visa. The best way for them to show that their technology is not redundant is to ensure that they offer something better than what any other company has.