- This collaboration is the latest addition to VISA’s 70+ crypto partnerships with various companies.
- VISA CFO Says There Is Continued Interest In Crypto Despite Declining Crypto Prices.
Credit card payment giant VISA is convinced that crypto investors are still willing to spend their digital assets despite the drop in crypto prices this year. VISA is partnering with the popular cryptocurrency exchange, FTX, to provide debit cards in 40 countries across Europe, Latin America, and Asia. The card is directly linked to each holder’s FTX investment account.
VISA CFO Vasant Prabhu said the partnership would allow users to transact cryptocurrencies without the need to convert their cryptocurrencies to fiat or withdraw from the cryptocurrency exchange. Prabhu also said that there is still strong interest in cryptocurrencies despite falling values.
As a company, we have no control over the value of digital currencies or whether it has a long-term positive effect. We want to simplify payment processes for people, even when they want to process payments with crypto.
More cryptocurrency offers for VISA
VISA’s new partnership with FTX adds to their multiple crypto collaborations. The credit card firm has collaborations with Binance and Coinbase, which are FTX’s fiercest competitors. Another leader in the credit card space, MasterCard, has also been involved in several cryptocurrency partnership deals.
Two notable MasterCard crypto partnerships are with Coinbase and Bakkt. The former is to facilitate NFT payment transactions, while the latter allows banks and small business owners on the Bakkt network to provide crypto services. Another credit card company, American Express, said it is developing a way to link its cards and network to stablecoins.
Stablecoins are usually cryptocurrencies pegged to the dollar. However, they are sometimes pegged to other fiat currencies, such as the euro. However, American Express CEO Stephen Squeri stated in an interview earlier in the year that the firm’s customers shouldn’t expect AmEx crypto cards “anytime soon.” In a recent phone interview, FTX CEO Sam Bankman-Fried said that he respects the fact that many traditional payment companies are embracing blockchain technology rather than fighting it.
He added that the adoption of cryptocurrencies by banks and payment companies would help fuel the growth of their market as well as being a store of value or speculative asset. This VISA-FTX partnership allows merchants to accept crypto payments without the need for proprietary technology. Prabhu and Bankman-Fried admitted that emerging markets provide huge opportunities as inflation and currency volatility make digital assets more attractive than usual.
According to Bankman-Fried, this partnership and others like it are more valuable outside the US (such as Turkey and Argentina), with poor payment options and a high demand for better payment alternatives. Multiple data shows that inflation rates in Argentina and Turkey are currently at 78 percent and 83 percent, respectively.