Bitcoin cannot be considered as a payment method, Visa CEO says

Visa is not keen on processing Bitcoin transactions

According to Visa CEO, Bitcoin cannot be considered as a payment method and therefore, they would not be processing Bitcoin transactions in the future.

The CEO of Visa, Alfred Kelly stated that they do not believe that it is a legit payment system.

The CEO is planning on sticking to the fiat-based currencies when it comes to processing transactions.

The Fiat currencies are being issued by the government and are backed by the government’s legal money. Bitcoin, on the other hand, is a decentralized cryptocurrency which is mined and which is not backed by any legal authority.

Currently, the acceptance of Bitcoin is on the rise but it is nowhere close to the acceptance of Fiat currency which is the universal mode of transaction. Also, Bitcoin prices are a highly speculative in nature. They have just a record high of more than $ 19,000 recently and have since then plans to do around $ 11,000. This after an astronomical rise from less than $ 1000 in January 2017 to about $ 19,000 in the December 2017.

In a related announcement, the CEO of Bank of America Brian Moynihan issued an advisory to the employees of the company to not buy cryptocurrencies on the behalf of clients. More and more financial institutions are actually shying away from investing in Bitcoins either directly or on behalf of their clients. Also, as the acceptance of Bitcoins as well as other cryptocurrencies increased, it remains to be seen whether any financial company would actually start processing such transactions.

Currently, when the interest in cryptocurrencies is on the rise it remains to be seen the 1st financial company which is biting the bait. Once any of the mainstream financial companies start accepting Bitcoins or processing Bitcoin transactions, it would be boost for the cryptocurrency. This would mark a transition towards the mainstream economy of the cryptocurrency.

With the features of the Bitcoin being lanched by multiple exchanges all over the world, it remains to be seen whether investors get more opportunities to invest in Bitcoins or not. The volume of futures trading is also increasing month on month owing to the interest of retail investors.

For now, however, it looks like none of the financial companies are willing to invest in cryptocurrencies or process transactions of cryptocurrencies. Even then, the value of the cryptocurrencies is rising which is sparking more and more interest by retail investors in cryptocurrencies.

Adam Webb is editor in Smartereum, blockchain and currency news, where he produces updates on Blockchain, Ethereum and other alternative cryptocurrencies.


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