After a hiatus of six months, Visa, the global payment behemoth, has once again shown interest in the crypto sector. The company recently signed a Memorandum of Understanding (MoU) with the crypto exchange, WhiteBIT. This move signifies Visa’s renewed commitment to a sector it had previously sidelined.
Visa and WhiteBIT Collaborate to Bridge Crypto and Banking
Earlier in February, both Visa and Mastercard had paused their initiatives to collaborate with crypto entities. This decision followed a series of bankruptcies and a market downturn that severely impacted the crypto industry. A representative from Visa remarked, “The recent setbacks in the crypto world underscore the challenges ahead before it becomes an integral part of conventional payment systems.”
Despite their temporary withdrawal, both Visa and Mastercard have been pivotal in fostering blockchain innovation, especially within traditional finance and banking sectors. Their absence was deeply felt within the industry.
Capitalizing on Visa’s Extensive Banking and FinTech Network
In their latest endeavor to promote mainstream crypto adoption, Visa’s partnership with WhiteBIT stands out. Visa’s vast network, which recorded approximately 242 billion transactions last year, can offer immense support to crypto firms by bridging them with major banks. WhiteBIT, in a recent, expressed its ambition to capitalize on Visa’s widespread network of banks and FinTech associates. The collaboration is designed to assist WhiteBIT in establishing robust ties with banks and fintech entities keen on integrating crypto-centric products.
Assimilating Cryptocurrencies in Conventional Payment Systems
Yevgen Lisnyak, the Senior Director and Head of Strategic Partnerships at Visa CISSEE, voiced the company’s optimism about the potential of crypto-related products. He emphasized that the current MoU would bolster WhiteBIT’s efforts to collaborate with banks, thereby introducing card schemes and assimilating cryptocurrencies into the mainstream financial framework.
Further showcasing its commitment to the crypto realm, Visa revealed its exploration into card-based Ethereum gas fee payments. The company employed the ERC-4337 standard, coupled with a paymaster contract, to facilitate Ethereum transactions without necessitating users to possess ETH. After successful trials on the Ethereum Goerli testnet, Visa is now keen on leveraging this concept to enhance the user experience for Ethereum enthusiasts.
Note: While this article strives to present accurate and timely information, readers are encouraged to independently verify facts and consult professionals before making decisions based on this content.
Learn more about Visa’s initiatives on their official website.
