Visa Reveals Surging Crypto Card Usage: Exceeds $1 Billion in 2021 First Half
In a groundbreaking report, Visa unveils that the utilization of crypto-linked cards has surged beyond $1 billion in the initial six months of 2021.
“Creating an ecosystem that renders cryptocurrencies as accessible and functional as traditional currencies is a priority for us,” affirmed Visa’s CFO, Vasant Prabhu, in an exclusive interview with CNBC.
Coinbase has entered the fray with its own debit card, aiming to incentivize the adoption of cryptocurrencies in both transactional and investment spheres.
Visa disclosed on Wednesday that consumers worldwide had spent over $1 billion worth of cryptocurrency on various goods and services through their crypto-linked cards during the first half of this year.
In contrast, Visa’s assessments reveal that crypto spending during the same periods in the preceding years remained minuscule. However, precise figures were not disclosed by the payments giant.
“We’re committed to fostering an environment where cryptocurrency is seamlessly integrated into everyday transactions, akin to traditional currencies,” emphasized Visa’s CFO, Vasant Prabhu. “People are exploring avenues to utilize cryptocurrencies for routine expenditures, akin to fiat currencies,” he elaborated, citing ongoing challenges related to volatility.
According to recent findings from Visa’s competitor Mastercard, a staggering 93% of North American consumers express intentions to embrace cryptocurrency or other emerging payment technologies like biometrics, contactless, or QR code systems within the next year. Notably, 75% of millennials indicate a willingness to engage with cryptocurrencies given better comprehension.
“We’re witnessing substantial activity on our network, with individuals increasingly purchasing cryptocurrencies through regulated exchanges, and this trend appears poised to continue,” remarked Prabhu.
Mastercard is slated to debut a crypto-linked card this summer in partnership with Gemini, a crypto exchange co-founded by billionaires Cameron and Tyler Winklevoss. The card will offer cryptocurrency rewards to consumers but will not provide direct access to digital wallets.
Visa also unveiled its inclusion of the FTX cryptocurrency platform, founded by billionaire Sam Bankman-Fried, into its Fintech Fast Track Program. This initiative aims to enhance the practicality of cryptocurrency for both consumer and business expenditures.
Circle, BlockFi, and Coinbase, the latter having gone public on the Nasdaq in April, stand as Visa’s existing partners. They facilitate cardholders in spending from their cryptocurrency wallets at over 70 million merchants globally. Visa foresees that crypto-linked cards and other innovative payment methods, including biometrics and QR codes, possess the potential to disrupt the annual $18 trillion cash and check transactions globally.
Bitcoin’s market capitalization breached the $1 trillion mark for the first time in February and reached a record high of nearly $65,000 per unit in April, propelled by retail investor enthusiasm amid the pandemic. However, Bitcoin’s value has receded by approximately 45% since then, briefly dipping below $29,000 last month.
Prabhu clarified that Visa currently harbors no immediate intentions to add cryptocurrencies to its balance sheet, unlike Tesla, MicroStrategy, and other corporations.
“We presently do not hold cryptocurrencies on our balance sheet. Our holdings primarily consist of currencies essential for conducting business operations — currencies we receive and disburse, such as the dollar, euro, and pound. Consequently, there are no plans to incorporate cryptocurrencies, as they do not align with our typical transactional framework,” he stated unequivocally.