Visa Head of Crypto Says Payments Will Rely On Multiple Blockchains

Global payments giant Visa continues to signal its interest in the world of cryptocurrency and blockchain technology.

In a recent blog post, Cuy Sheffield, the company's Head of Crypto, drew parallels between the current state of blockchain technology and the early days of the internet, suggesting that blockchain is currently experiencing its "broadband moment."

Sheffield noted that blockchains, much like the early internet, have faced their fair share of sceptics and critics. Common criticisms include claims that blockchains are too slow, too difficult to use, and too expensive. However, Sheffield pointed out that the internet also had its challenges in its early days, including being slow, expensive, and difficult to use. Over time, the internet evolved into a ubiquitous and user-friendly technology. Visa, with its long history in the payments industry, recognizes similar potential for blockchain networks.

Visa, which processes a substantial portion of global transactions daily, envisions a future where its networks incorporate various forms of blockchain technology. This vision includes cryptocurrencies like stablecoins, as well as government-issued central bank digital currencies (CBDCs). Sheffield stated, "Going forward, we imagine a future where Visa’s network of networks involves more than just multiple currencies and bank settlement rails, but also multiple blockchain networks, stablecoins, and CBDCs or tokenized deposits."

Visa's recent expansion of its stablecoin settlement capabilities to the Solana blockchain, using Circle's USDC, exemplifies its commitment to this vision. This move aims to create a new cross-border money system, potentially streamlining international transactions and settlements.

Sheffield emphasised that blockchain technology is still evolving and will likely mature over the next decade. While PayPal and BlackRock have recently entered the cryptocurrency space, Sheffield's post highlights a broader trend of established financial institutions exploring the possibilities presented by blockchain.

The comparison to the early internet suggests that, despite initial scepticism, blockchain technology has the potential to become a foundational element of the financial industry. Sheffield envisions a future where Visa's payment network seamlessly integrates various blockchain networks, stablecoins, and CBDCs, catering to a diverse range of client preferences.