Al Kelly, CEO of Visa, believes that cryptocurrency could become “extreme mainstream” within five years. He is working to position Visa in the middle should the cryptocurrency take off. He also confirmed that Visa is working to allow Bitcoin purchases and use the cryptocurrency in 70 million stores that accept Visa.
Visa expects crypto to become “extremely mainstream”
In the podcast “Leadership Next” published on Tuesday with Alan Murray and Ellen McGirt, Al Kelly, CEO of Visa, spoke about Bitcoin and his company’s cryptocurrency strategy. Given the recent surge in the price of Bitcoin, he was asked what this means for his credit card business.
“I want to split crypto in two buckets,” Kelly began. “One is the more speculative asset,” or “digital gold,” he explained, adding that he puts Bitcoin in that category. The CEO explained:
In this category we are trying to do two things. One option is to enable the purchase of Bitcoin with Visa credentials.
Second, Visa is “working with some bitcoin wallets so that bitcoin can be converted to fiat currency and therefore instantly usable in any of the 70 million places around the world that accept Visa,” added Kelly.
“The other category of crypto is digital currencies,” he continued, adding:
There we see strong potential for those to become a new payment instrument. In fact, it could be an acceleration in some emerging markets if we look around the world.
He went on to reveal that Visa “works with a lot of players” in this category. “There are around 35 different players that we work with,” he explained, making it clear that “these are currencies that are fiat-backed [stablecoins]. ”
His statement reflects what Visa stated in its earnings call for the first quarter of 2021. “Our strategy is to work with wallets and exchanges so that users can purchase these currencies with their Visa credentials or cash out our Visa credentials to make a fiat purchase from any of the 70 million merchants that accept Visa worldwide to do.” Company informed its shareholders.
During Tuesday’s podcast, Kelly was also asked where Visa stands as it uses cryptocurrency to cut transaction costs so users don’t have to pay as much to Visa and Mastercard as they do today.
“The thing about our business that I really like is that we don’t pick winners and losers,” he said. “Since you and I are sitting here today talking, I don’t know to what extent cryptocurrencies will take off. Are we going to say in five years that it was a fad and not a big deal? Or will it be extremely mainstream? I’m not smart enough to know, but I’m smart enough to make sure our company is right in the thick of it today so that when it takes off we are just helping move that money around. “
He then compared Visa’s current business model with the previous one, making it clear that Visa used to be all about people using its products to buy and sell goods and services. “Today we have turned the company into a company that deals with money movements worldwide. So we want to be right in the middle of it,” he said:
When it gets going and we can get our fair share or more of the volume assuming this could potentially take off and become a big deal, we definitely want to be prepared for it and I think we’re off to a very good start laid down.
What do you think of Visa’s bitcoin strategies? Let us know in the comments below.
Tags in this story
al kelly, bitcoin wallets, buy bitcoin, buy bitcoin with visa card, buy cryptocurrencies, mainstream, use visa card, visa bitcoin, visa card bitcoin, visa ceo bitcoin, visa crypto, visa cryptocurrency
Photo credit: Shutterstock, Pixabay, Wiki Commons
Disclaimer of liability: This article is for informational purposes only. It is not a direct offer or a solicitation of an offer to buy or sell, or a recommendation or approval of products, services or companies. Bitcoin.com does not provide investment, tax, legal, or accounting advice. Neither the company nor the author are directly or indirectly responsible for any damage or loss caused or allegedly caused by or in connection with the use or reliance on any content, goods or services mentioned in this article.