Visa is in the news again. This time, it has announced the expansion of its stablecoin business to cover Central and Eastern Europe, the Middle East, and Africa (CEMEA). This comes after the successful launch of stablecoin-linked cards in Latin America. The company has also formed a strategic partnership with African crypto exchange Yellow Card to explore cross-border payments, treasury management, and liquidity optimization solutions.
Stablecoins are fast becoming the preferred crypto payment for users and businesses on the internet. Visa is seizing the opportunity yet again to further reinforce its foothold in the market, having invested in stablecoin payments firm BVNK last month. Senior Vice President of Visa, Godfrey Sullivan, in a statement, said that he believes every institution that moves money will need a stablecoin strategy. CEO of Yellow Card, Chris Maurice, thinks that the company’s partnership with Visa will bridge traditional finance and digital money. The collaboration will also bring new innovative solutions to transform how money is moved securely and efficiently.
Visa’s Expansion Will Increase Global Access to Stablecoins
Visa’s announcement marks a significant move that will accelerate the mainstream adoption of stablecoins, which are already gaining traction due to their nature. The payment provider first made its foray into the stablecoins market in April. It partnered with Bridge to issue stablecoin-based Visa cards to six Latin American countries. This enables cardholders to make purchases at any merchant that accepts Visa at the point of sale.
Launching in Central & Eastern Europe, the Middle East, and Africa is a testament to Visa’s commitment to bridging the gap between everyday payments and DeFi in underbanked regions. Users will no longer be limited to crypto exchanges, have the need to understand blockchain, or manage private keys – they will have increased access to stablecoins in physical and online stores. It’s like traditional shopping with your fiat cards, lowering barriers to entry.
Visa’s investment in BVNK shows confidence in the digital asset class and infrastructure. It signals to Fintechs and banks that stablecoins can become utility tokens for everyday use, acting as Fiat in regions where local currencies are failing.
Stablecoins to Shine in Cross-Border Economies
With the expansion of stablecoins to CEMEA regions, this digital asset class will finally fulfill its true purpose of cross-border utility and remittances. Areas that are inflation-prone, with high volatility fiat, or have limited access to banks, can leverage stablecoins for instantaneous payments. For instance, a Nigerian labourer in the UAE can receive USDC instantly and spend it locally with Visa’s expansion. Stablecoins can help foster cross-border utility in the CEMEA region, enabling users to transfer and spend stablecoins internationally without heavy international fees.
Furthermore, stablecoins provide a more stable store of value in inflation-hit areas due to their dollar peg. Unlike traditional banks with working schedules, crypto payments work anytime, easing the stress of making late-night payments or initiating transactions during the holiday. Users also have access to reduced FX fees, given that Blockchain payments are being used.
Adopting stablecoins as a merchant means faster settlement times and reduced FX risks commonly associated with Fintechs and banks. Merchants in emerging economies can take part in global finance and access stablecoins instantly. Visa hopes to expand to more markets, with deeper Fintech integrations to enable stablecoin payments.
