Best Cryptocurrency Exchange App

Crypto Payments Are Coming To Visa, Mastercard, PayPal

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Big companies don’t want to compete against cryptocurrencies, they want to join in. Currently, the largest US payments companies view crypto networks as a Opportunity to grow and expand. Besides simple rebranding, these payments companies (Visa (V), Mastercard (MA) and PayPal (PYPL)) are working hard to engage themselves within the cryptocurrency economy.

In terms of the Internet economy, there are two external sectors that benefit greatly from the growth of cryptocurrencies. First, cryptocurrency exchanges can benefit by acting as a file outlet to web 3 (see my argument for this here). Secondly, old payment providers can benefit by becoming interoperable With the most common cryptographic networks (see the importance of interoperability here).

Why Should Payments Companies Embrace Crypto?

When most people see the entry of large corporations into the cryptocurrency economy, they often find it unnecessary. For example, people thought that renaming Facebook (FB) to Meta was absurd. For the most part, I think most of these people fail to realize transform myself that appeared around the world after covid, and they failed to realize The real technological benefits It is rooted in decentralized networks.

Recently, Visa effectively articulated the psychological transformation that has taken place in society in a press release with Business Wire, presenting new research regarding small businesses and cryptocurrency.

quotes

Visa 2022 Study Quote

Study Visa 2022

As shown in the clip above, companies see cryptocurrency Not only for its technological benefits, but also for its commercial benefits. In a uniquely powerful way, payments companies can benefit from Both One of these factors is by becoming interoperable with cryptocurrencies.

The big payments companies are already working hard with this task. Below, I’ll touch on the top three:

Visa

Back in March, Visa built a method for converting and settling USDC stablecoins (OTC: USDC) on its network. On Thursday (1/13) Visa announced its partnership with blockchain software company Ethereum (ETH-USD) Consensys to create a network designed specifically for central bank digital currencies.s (“CBDCs”).

Brand Visa/Consensys

Visa/Consensys/CBDC Networks

Consencience

The majority of central banks have already conducted research on central bank digital currencies over the past year. To me, it seems likely that 2022 will see the issuance of the first digital central bank digital currency by a major country (probably China).

Regarding Visa, the company plans to use Consensys’ Quorum network to create a ready “CBDC sandbox” by spring 2022. This means that in just a few months, Visa and Consensys will have a scalable, functional network ready to launch a CBDC.

Master Card Credit Card

On December 16, ConsenSys further announced that it is working with Mastercard to build the Consensys Rollups. Consensys Rollups is a privacy-focused, scalable, modular software solution that can be connected to the Ethereum Mainnet or to Quorum’s private networks.

Brand Conssensys / mastercard

ConsenSys / MasterCard

Consencience

Once again, Consensys is working with Mastercard with the primary goal of creating a digital currency platform for central banks. Besides issuing digital currency, developers can use Consensys groups to create DEX and other 3 web applications, while users can use the network for micropayments, private transfers and tax payments.

PayPal

Recently, there have been supposed assertions that PayPal is “exploring” opportunities to create its own stablecoin. On January 7th, Bloomberg reported that the code included in the PayPal iOS app mentioned the so-called “PayPal Coin.”

PayPal coin logo

PayPal coin

Steve Moser

Source: Bloomberg

However, a PayPal spokeswoman said that information about this coin was derived from a recent internal hackathon within the company’s digital assets division. Notably, the images in the PayPal iOS app also point to NEO, a decentralized smart contract platform primarily based in China.

Coins being searched by PayPal

PayPal stable currency

Steve Moser

What this tells us is that, similar to Visa and Mastercard, PayPal is actively researching and working with cryptocurrencies.

stablecoins

There are quite a few narratives/sectors that I’m dealing with heavily in 2022. One of the sectors I haven’t mentioned yet is stablecoins. Specifically, I think the USDC has the greatest potential for widespread retail adoption.

To invest and benefit from the growth of stablecoins, it is best to look for stocks and tokens of an undervalued cryptocurrency exchange, along with payment companies that plan to use stablecoins. As a result of this, the payments companies I covered above are solid choices.

In terms of exchanges, I like Voyager Digital (OTCQX: VYGVF), Crypto.com (CRO-USD), and Coinbase (COIN). Both of these exchanges are planning to expand their operations and enter the crypto payments industry.

In addition, if you want to invest directly In the stablecoin infrastructure (this is risky), you can then buy Maker (MKR-USD) or Terra Luna (LUNA-USD). Maker is a governance token that maintains a stablecoin backed by DAI (DAI-USD), while Terra Luna is a Layer 1 network that includes its algorithmic-backed stablecoin, TerraUSD (UST-USD).

conclusion

Big companies are entering the cryptocurrency market faster than you think. In just a few months, fully operational networks will be ready to host retail payments and central bank digital currencies.

Next year, I expect to see the launch of the first central bank digital currency. Most likely, this will happen in China. Also, I expect to see more big moves in the digital payments space, and I expect to see further expansion through crypto exchanges.

Editor’s Note: This article covers one or more smaller equity shares. Please be aware of the risks associated with these stocks.

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