- March 29, 2021
- Posted by: admin
- Category: Fiat
Future of Payment Settlement: Visa Enters the Market:
The adoption of Bitcoin has seen companies like visa introduce not only the infrastructure but also integrating as a means of payment.
MasterCard as well as PayPal have pushed forward to allow for crypto payments within their ecosystems. These brazen moves were taken by brands such as Tesla and sports enthusiast such as Mark Cuban (The Mavericks).
The diverse world of crypto-asset classes disadvantages those who don’t participate.
Decentralized finance a term that has been trending in the cryptocurrency space.
Access to lending and borrowing in the form of protocols (set ways to govern transactions). Decentralized finance projects such as Reef Finance, Uniswap, AAVE, Chainlink, and Luna has provided users access to financial services without an intermediary
Road Map to Crypto Adoption
With Visa, Mastercard, and PayPal integrating cryptocurrency payments (Visa has partnered with crypto.com). It is impossible to ignore the expected increase in adoption and market capitalization.
The infrastructure needed to run these services will be developed on the Ethereum blockchain. The automated nature of blockchain will have Visa access to real-time payment settlement.
Payments will be settled in the USDC stable coin pegged to the US dollar. This guarantees less volatility for price adjustments on settlement amounts.
Opening the Floodgates?
The importance of cryptocurrencies as a peer-to-peer payment system is the foundation of bitcoin’s white paper. With massive payment infrastructures being developed of other blockchain infrastructure.
Infrastructure is set up with merchants and decentralized financial products are being made available. Are we seeing the era and replacement are fiat currency?
Trust in fiat currencies as a medium of exchange will slowly be degraded with the use of cryptocurrencies which retain value during inflation.
Central Bank Digital Currencies (CBDCs)
As the name implies, the centralized version of cryptocurrencies are CBDCs
Power Consolidation the Global Narrative
The Central Bank currency will be owned by the Central Bank, not private banks.
Who owns central banks?
The notion that central banks are law-abiding citizens with a moral obligation to improving their citizen’s standard of living is a lie.
Like any organization, the directive of central banks is to maintain their position of power and status quo within the economy.
Cryptocurrencies are a threat to Central Banks
With central banks’ primary directive to uphold investor integrity and equity value, it will compete with global decentralized currencies.
The high cost of managing and transporting money, the implications of liabilities for fractional banking have inspired the move into CBDC.
With government organizations being simply shareholders in these authorities and regulatory bodies it is hard to believe that central digital currencies have the best interest of the population at heart.
The African Continent Issue
Desperation in Africa continues and it’s been amplified through the COVID pandemic and economic disaster. Hyperinflation has ravished many parts of Africa such as Zimbabwe, Sudan, and Angola.
Poor governance policies and economic exclusion have created a divide among developing countries and developed countries. The exchange rate policies implemented by central authorities only serve first-world developed countries.
Developing Nations are forced to participate.
Projects such as the Akoin coin and Visa acceptance of cryptocurrencies have enabled Africa to develop its financial system better. The oppressive nature of the exchange rate instead of free-market value has seen African countries suffering the effects of hyperinflation and degeneration of the financial systems.
The irony comes from the fact that central banks are responsible for regulating the financial system, but they are responsible for the mistreatment of the African financial markets.
Developed Nations being favored to enjoy low inflationary pressures, as well as freedom from liability. This intrinsic degeneration of the financial system sees a rise in the adoption of digital global payments systems such as G999.
Ahead of the Change: GS Lifestyle Cards Powered by the Blockchain
Take Control of Your Freedom
An alternative banking platform for crypto and traditional currencies combined with concierge services and travel discounts. Projects such as G999 have taken bold steps to ensure value with free transfers in and out of the account (debit card with a monthly fee) and instant crypto exchanges at market price.
Advantages: Crypto and Fiat Private Banking
- Monthly Membership Fee
- Multi Currency Account
- Crypto Currency Wallets
- GS Lifestyle Debit Card
- Card Delivery
- Internal Fiat Transfers Member To Member
- External Fiat Transfers Member To Member
- Travel Discounts
- Concierge Service
Visa: New Market Conditions
In conclusion, the rivalry between Visa and Mastercard is increasing the awareness of cryptocurrencies. Ethereum, the worlds second-most valuable cryptocurrency’s market cap of $320 billion is now more valuable than payments giant, PayPal Holdings.
The CEO of Visa, AI Kelly discussing central bank digital currencies and financial inclusion.
Visa mentioned its services related to bitcoin, stablecoins, and, on a longer time horizon, central bank digital currencies or CBDCs.
Kelly discussed several ways Visa is engaging the crypto market, which he divided into investment assets or “digital gold” as he called it and digital currencies, which he said are more amenable to payments.