Bitcoin was born to become a P2P payment alternative to fiat, or at least Satoshi hoped so. Since then, many crypto projects have not forgotten to include a big goal in their WhitePaper: becoming a global means of payment in the future. And obviously, this implies that crypto will compete with traditional payment services such as Visa.
And Visa also didn't love crypto when its business was threatened. In 2018, Visa banned a series of crypto cards and caused many difficulties for those projects
[1].
Things got better when in 2021, Visa confirmed it might offer crypto services
[2], which was unfortunately delayed to 2023 after the collapse of FTX
[3].
Now that the crypto market is recovering strongly and the BTC Spot ETF has been approved, Visa is back and allowing crypto withdrawals on debit cards in 145 countries:
"The new integration allows users to withdraw cryptocurrencies like Bitcoin directly from a wallet like MetaMask to a Visa debit card. Available immediately, the integration enables one to exchange crypto to fiat and pay at 130 million merchant locations where Visa is accepted[4]."I think Visa's move exemplifies the changing relationship between Visa, representing the traditional financial system, and crypto from the world of decentralized finance and will benefit both sides:
- Crypto enjoys mainstream adoption, reaching Visa's billions of users worldwide.
- Visa enters the crypto world, gaining more users and more transaction fees.
In the end, competition and rivalry are unnecessary. New cooperation is what we need to build a better financial system. I believe that Visa will play an important role in the future development of the crypto market.
Do you think this event is important for the crypto market? Does Visa's participation in the crypto ecosystem represent progress or regression for the industry?
[1]
Some cryptocurrency-backed debit cards dropped from Visa network, leaving users scrambling[2]
Visa Introduces Crypto Advisory Services to Help Partners Navigate a New Era of Money Movement[3]
Visa, Mastercard pause crypto push in wake of industry meltdown[4]
Visa enables crypto withdrawals on debit cards in 145 countries