Visa has announced a new product that will allow consumers in six Latin American countries, including Mexico and Argentina, to use stablecoins for everyday purchases.
Visa’s new service aims to capitalize on this growing trend, making it easier for consumers and merchants to transact using these digital assets.
Seamless Transactions With Stablecoins In Local Currencies
Rubail Birwadker, Visa’s senior vice president, illustrated the service’s functionality with the example of a freelance worker in Colombia who receives payments in US dollars. This worker could accept wages in stablecoins and then use a Visa-branded card—either physical or digital—to make purchases at local stores or online.
The appeal of this system lies in its seamless integration; merchants receive payment in their local currency immediately, making the process as straightforward as any other Visa transaction.
Birwadker emphasized that many individuals in Latin America are already adopting stablecoins as a safeguard against economic volatility. He believes that Visa’s new offering will further normalize their usage in everyday transactions.
“If you can figure out how to tie stablecoin spend with Visa’s off-ramp, that unlocks the case use,” he stated, highlighting the potential for stablecoins to enhance financial transactions.
However, this is not Visa’s first venture into the cryptocurrency space. The company, alongside rival Mastercard, has previously provided its payment infrastructure to various cryptocurrency platforms, enabling users to spend Bitcoin (BTC) and other digital currencies.
Visa’s New Service To Use USDC
The current launch stands out because it focuses specifically on stablecoins, which are designed to maintain a consistent value. The service will also leverage Bridge’s technology, allowing for a flexible and open-ended approach to payment processing.
Bridge, founded by former Coinbase employees Zach Abrams and Sean Yu, aims to simplify the process of integrating stablecoins into financial applications. Acquired by Stripe for $1.1 billion, Bridge serves as a neutral provider of APIs and technology, facilitating the deployment of stablecoin solutions.
By partnering with Bridge, Visa can extend its new payment service to a range of third parties, enabling them to develop their own consumer and merchant applications.
The initial stablecoin expected to be used in this service is USDC, which is backed by Circle and Coinbase. However, Visa and Bridge plan to support additional stablecoins and various blockchain technologies in the future.
Abrams noted that this service will be particularly beneficial for businesses in regions with limited fintech infrastructure, allowing them to create financial products similar to popular apps like Chime or Cash App without needing extensive local financial networks.
Both firms anticipate launching this stablecoin payment service in the six selected Latin American countries within the next few weeks, marking a significant step in making cryptocurrency a viable option for everyday transactions in emerging markets.
Featured image from DALL-E, chart from TradingView.com
