Visa is taking a risk in the midst of the ongoing bear market for cryptocurrencies by betting that cryptocurrency investors will continue to use their assets for day-to-day items purchased regardless of the recent decline in market value.
FTX, one of the biggest cryptocurrency exchanges in the world, has formed a partnership with the payments giant Visa to launch debit cards in forty countries throughout the globe.
With this change, their customers would be able to pay for products and services using debit cards that do not incur any transaction fees. According to the website of the firm, card ownership is also free of charge.
The exchange’s cryptocurrency investment accounts of users will be instantly accessible via the use of cards that are already on the market in the United States. The Chief Financial Officer of Visa has said that the move would allow customers to spend digital currencies without moving them off of an exchange, “just as you would with any bank account.”
There is still a consistent interest in cryptocurrency despite the fact that prices have dropped. As long as people have items they want to purchase, they want to assist it, said the CFO, Vasant Prabhu. As a corporation, they do not have a view on what the value of cryptocurrencies should be or if it is a good thing in the long term.
Prabhu also brought up the desire for stablecoins, which are cryptocurrencies that are pegged to the value of a fiat currency such as the dollar or another currency.
According to the CFO, the company sees a lot of consumers creating cryptocurrency holding accounts and using them the same way they would use a bank account.
According to Bankman-Fried, the acceptance of credit card payments is essential to the expansion of the market beyond its current role as a speculative asset or, for some, a store of wealth. The cooperation between Visa and Bitcoin makes it simpler for businesses to accept cryptocurrency without the need to put up their own proprietary systems. In the background, Visa and FTX do the conversion.
Even if the market for cryptocurrencies is now in a bear market slump, Visa, along with its other market rivals, maintains the position that consumers of bitcoin and other cryptocurrencies still wish to utilize their holdings as a means of exchange.
This is the most recent step that the payments giant has made into the market, increasing the total number of cryptocurrency relationships that the corporation has to over 70. The company, which operates out of San Francisco and has its offices there, has worked together in the past with FTX’s competitors Coinbase and Binance.
FTX Token Spikes Up After News
As a result of the announcement, the value of the FTX token, which is the native cryptocurrency of the FTX trading platform, increased by 7%, hitting an all-time high of $25.62. However, the all-time high for the token is approximately $80, which is quite a distance away.
Mastercard, which is the most significant competition Visa has, has also teamed with a number of different firms in order to provide bitcoin and cryptocurrency-backed debit cards. Reportedly, American Express has shown interest in selling a product that is comparable to this one, despite the fact that the CEO of the company has said that this would not happen anytime soon.