One of the details with cryptocurrencies is that it is A payment method that does not match conventional methodologies such as bank transfers, credit cards, debit cards, etc.However, a cryptocurrency has emerged that promises to solve these problems. It's USDcoin. It's a stablecoin backed by the US dollar, and will now work in conjunction with Visa credit cards.
Payments will be made through the Ethereum blockchain. This is an interesting partnership, as cryptocurrencies are present all over the world and in addition, Visa cards They have an excellent international reputation.
One of the consequences of this merger is that payments are processed at a rapid pace. While credit cards typically take some time, cryptocurrency payments will be immediate, speeding up commercial transactions everywhere.
BUY BITCOINA stablecoin is needed for this process.
La The currency in question is called USDcoin. As we mentioned before, it is pegged to the US dollar, with a parity of 1:1The idea is to go far beyond the fintech system. The mission is to get ever closer to a brotherhood between digital currencies and banks.
However, for now it is necessary to create a bridge between both financial modes. That is precisely the mission of the USDcoin, which serves as a bridge between the US dollar (a currency supervised by a central bank) and the Ethereum network (the second strongest cryptocurrency, after Bitcoin).
La Crypto volatility has been a barrier to transactions. And that volatility is bad for credit cards! However, the The solution lies in stable and digital currenciesSeveral of these currencies already exist, such as the very popular USDT.
But the thing is, cryptocurrencies and banking systems have always been separate. That's precisely why the USDcoin to solve this prerogative. And how does it do this? Well, by becoming the currency that resolves the issue of “settlement transaction".
BUY ETHEREUMWhat is a settlement transaction?
Credit cards have a mechanism that we all know. Basically, They operate through authorization. Payment is made at a pizzeria, coffee shop, or when purchasing an airline ticket. And what happens next? The payment isn't made immediately. Those who accept credit cards don't receive the money instantly in their accounts, but rather They must wait for a payment procedure to take place.
To complete this procedure, the card is authorized to issue a certain amount of money, which can be in any international currency. The company then who controls that card collects the money from the payer's bank account. This is what is called a settlement transaction, which takes several business days.
The advantage is that now this settlement transaction will be carried out by the stablecoin USDcoinSince it's a cryptocurrency payment, it's processed immediately. You don't have to wait for the time or authorization process that credit cards traditionally take. The result? Businesses that accept credit cards are happy to use USDcoin.
Therefore, it is a cryptocurrency that makes payments much faster than the traditional Visa card. There is a lot of talk about this, leading to the conclusion that it is necessary to support this type of initiative. At the same time, it is required to be a stable coin, although the network of Ethereum for its operationIn any case, it's an initiative that promises to unify traditional banking systems with the emerging world of international cryptocurrencies.
BUY USDT HEREA project that has been in the making since 2019
That year, Visa made its first forays into the world of cryptocurrencies. The problem was that no digital currency could be used in credit card systems, so the issue shifted to another topic: Create the digital fiat currency that would allow the implementation of cryptocurrencies in credit cardsIt couldn't be just any existing currency (stable or volatile), but a cryptocurrency created specifically for this activity.
Es This is how the USDcoin project was born. And what was the first step in its implementation? Well, meetings with the people from the United States Treasury. And that is the key issue, the USDcoins is tied to the US dollar.
Therefore, an agreement with the US Treasury Department is necessary. In the following stages, a blockchain and cryptocurrency network were sought, and the blockchain was chosen for this purpose. Ethereum.
However, all of the above also requires an effort on the part of Visa. From now on, this company will have to detail the use of cryptocurrencies in their settlement reports. Also, to demonstrate that this new payment method is truly efficient. It is undoubtedly a decision that is generating a lot of positive feedback, as it would allow for International credit cards that make immediate payments, which would not be rejected for any reason.
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Are the most volatile cryptocurrencies also coming into play?
No, they're too volatile. Credit cards depend on currencies that have a certain stability. However, an important fact is that USDcoin will be used on exchanges, and can be exchanged for digital currencies like Bitcoin. So, a person can have funds in their account by purchasing crypto on exchanges, the same funds they can then use on a credit card.
Could this be the beginning of a new way of conducting business? Cryptocurrencies are already gaining prominence, even being present in credit card technology. The aim is to facilitate payments while not turning our backs on a financial technology that is widely accepted among people.
The reality is that cryptocurrencies not only spark curiosity, but they also have a very good reputation among the general public who are willing to use them.
