According to Al Kelly, the CEO of Visa, the company could encourage crypto in the future when the global market goes in the path of embracing consensus transactions like Bitcoin and Ethereum.
From the brief to mid-term, Kelly advised Jim Cramer, the host of Mad Money, which cryptocurrencies as an asset class isn’t a threat to book monies that serve as the foundation of Visa’s merchandise. However, he said the adoption of cryptocurrencies enhances over time to come, Visa will ease the demand for the asset class.
“I think there has to be some market that it becomes somewhat like a fiat currency in order for us to be comfortable. If it goes in that direction, we will move in that direction. We want to be in the middle, Jim, of every payment flow in the world regardless of how it happens or what the currency is behind it. So if we have to go there, we will go there. But right now, it’s more of a commodity than a payment vehicle.”
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Visa is the most influential credit card service business in the finance sector and is among the most lucrative businesses in the marketplace alongside Mastercard.
From the long-term, Kelly highlighted that Visa will serve as a middleman to pull crypto users to send and receive digital resources with Visa on its own platforms, by supplying fees to the business.
But by the time Visa would feel comfortable in integrating cryptocurrencies, which since the CEO described it as when the asset category is established utilized by the mainstream, cryptocurrencies would not require middlemen to process payments.
With non-custodial wallets and open-source programs, users of cryptocurrencies can and move digital assets without paying more fees on top of this transaction fee provided to the miners of their ecosystem.
Currently, as a result of the lack of merchant adoption, it’s hard for crypto consumers to compensate merchants to buy simple products like coffee and food. A financial institution at the magnitude of Visa could increase the adoption of crypto amongst retailers in a massive capacity.
But, the intent of Visa to target the cryptocurrency industry is to provide middleman services several years from now when cryptocurrencies are already accepted by merchants and being utilized as an alternate currency to book currencies like the US dollar.
The time to support and experimentation with cryptocurrencies is currently when it is experiencing exponential growth and is still at an early phase.
Years later on, the cryptocurrency industry could heavily rely on systems and services, which even platforms inside the market including Binance anticipate, as seen in the development of the Binance decentralized exchange.
Already, Fidelity, Goldman Sachs, and Citigroup have begun to serve investors at the cryptocurrency market by seeing sufficient demand for the new asset category, while Visa, Morgan Stanley, and several other financial institutions remain cautious in going into the cryptocurrency market.