Visa International CEO, Al Kelly, is having an open mind on cryptocurrency. Therefore, the company is ready to adopt any digital coin associated system subject to the virtual assets becoming more established one. At the same time, he does not see any threat from the emerging asset class in the immediate term.
Visa CEO believes that there should be some market that is similar to that of a fiat currency so that it could be in a comfortable position. While stating that cryptocurrencies are not a threat in the medium term too, he pointed out that fiat currencies have the governments backing relative to currencies backed by physical commodities. While Kelly thinks that digital coins have precious metals backing, others are seeing the emerging asset class with inherent value.
The company’s CEO indicated that it could consider virtual currencies business if “crypto starts moving from being more of a commodity to actually really being a payment instrument.” Therefore, Kelly indicated that he could not mind going in that direction if the emerging sector also goes in that way. In a nutshell, he said that if the company has no option but to enter the cryptos, it will do that. However, he thinks that it is a commodity currently rather “than a payment vehicle.”
Significantly, the comments of Kelly came on the back of Visa delivering better than expected earnings for the third quarter. The emergence of digital coins was seen as a threat to the card processing firms in one way or the other. However, Visa CEO dispelled any such threat immediately though he is not sure about the long-term of the virtual assets market. The overall crypto market is volatile, and in the middle of October, the segment lost approximately $18 billion in value.
There is also change in tactics as Coinbase and Circle disclosed recently to promote American Greenback supported virtual assets. This type of currencies are called “stablecoins” and reduces volatility. The two companies are trying to provide viable payment alternatives to users.
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