# Visa launches crypto advisory service for financial institutions, merchants
Author:  Pal Sinha, Barnali 
Author URL: https://financedigest.com/author/pal-sinha-barnali
Published: 2021-12-08
Category: FINANCE
Category URL: https://financedigest.com/category/finance
Meta Title: Visa Launches Global Crypto Advisory Service for Banks and
Meta Description: Visa Inc launches a new global crypto advisory service for banks and merchants, helping them navigate the world of digital currencies and offering education,
URL: https://financedigest.com/visa-launches-crypto-advisory-service-for-financial-institutions-merchantshtml

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By Noor Zainab Hussain

(Reuters) – Visa Inc, the world’s largest payment processor, on Wednesday launched a global crypto advisory service for clients such as banks and also merchants, as the adoption of digital currencies gains steam.

The move by Visa comes against the backdrop of unprecedented investor demand for crypto services and the company’s latest offering is geared towards financial institutions eager to attract or retain customers with a crypto offering, retailers looking to delve into non-fungible tokens (NFTs), or central banks exploring digital currencies.

Visa’s services include educating institutions about cryptocurrencies, allowing clients to use the [payment processor’s network for digital](https://www.financedigest.com/the-future-of-digital-payments-and-collections-16.html "The Future of Digital Payments and Collections 16") offerings, and helping manage backend operations.

We came to Visa to learn more about crypto and stablecoins and the use cases that are most relevant for our [retail and commercial](https://www.financedigest.com/iveco-to-transfer-nordic-retail-and-commercial-operations-to-hedin.html "Iveco to transfer Nordic retail and commercial operations to Hedin") business lines,” said Uma Wilson, executive vice president at UMB Bank, a regional U.S. lender.

A new global study by Visa showed nearly 40% of crypto owners surveyed would be likely or very likely to switch their primary [bank to one that offers](https://www.financedigest.com/first-abu-dhabi-bank-could-renew-35-billion-offer-for-stanchart-bloomberg-news.html "First Abu Dhabi Bank could renew  billion offer for StanChart -Bloomberg News") crypto-related products in the next 12 months.

Visa currently uses its network to allow buying, selling, and custody of [digital currency](https://www.financedigest.com/coindirect-makes-digital-currency-trading-simple-now-live-in-uk-south-africa-nigeria-and-kenya.html "Coindirect makes digital currency trading simple, now live in UK, South Africa, Nigeria and Kenya"). It also offers a [credit card](https://www.financedigest.com/uk-credit-card-borrowing-rises-by-most-since-2005-boe.html "UK credit card borrowing rises by most since 2005 – BoE") that lets users earn bitcoin on purchases and also allows the use of USD Coin, a stablecoin cryptocurrency whose value is pegged directly to the U.S. dollar, to settle transactions on its [payment network](https://www.financedigest.com/jet-team-appoints-frontierpay-to-streamline-global-payments-network.html "JET TEAM appoints Frontierpay to streamline global payments network").

However, for cryptocurrencies such as bitcoin to be used as a medium of exchange, price stability is needed, Visa’s [Chief Financial Officer](https://www.financedigest.com/tips-for-choosing-the-right-chief-finance-officer-for-your-business.html "Tips for Choosing the Right Chief Finance Officer for Your Business") Vasant Prabhu told Reuters.

If the [price is going to fluctuate](https://www.financedigest.com/oil-prices-fluctuate-amid-supply-constraints-and-demand-concerns.html "Oil prices fluctuate amid supply constraints and demand concerns") from $60,000 to $50,000 in a few hours, it’s a very difficult thing for a merchant to accept (bitcoin) as a currency,” Prabhu said.

I don’t know if [cryptocurrencies like bitcoin will ever be a medium of exchange](https://www.financedigest.com/verasity-vra-lists-on-tier-1-cryptocurrency-exchange-crypto-com.html "Verasity $VRA Lists on Tier-1 Cryptocurrency Exchange Crypto.com"). Stablecoins will,” he said, adding that Visa would facilitate such transactions when the time was right.

(Reporting by Noor Zainab Hussain in Bengaluru; Editing by Shailesh Kuber)


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