- FTT, the native token of cryptocurrency exchange FTX, increased by 7% following news that the company has collaborated with payment juggernaut Visa (V).
- According to FTX, the initial growth would mostly target Latin American nations, with Europe and Asia also on the agenda.
- According to Vasant Prabhu, CFO of Visa, despite declining prices, interest in cryptocurrencies has not changed.
Visa is making the wager that even when the value of cryptocurrencies declines this year, investors will still want to use them to make purchases.
With an emphasis on Latin America, Asia, and Europe, the payments industry giant is collaborating with global exchange FTX to sell debit cards in 40 nations. The cards will instantly connect to a user’s FTX cryptocurrency investment account and are already accessible in the United States. According to Visa’s CFO, the update enables clients to spend digital currencies without transferring them away from an exchange.
Vasant Prabhu, CFO of Visa, told CNBC that despite falling prices, interest in cryptocurrencies has remained steady. As a business, they don’t have an opinion on what cryptocurrency should be worth or if it will be beneficial in the long run; instead, they just want to make it easier for consumers to buy the items they need.
The agreement takes place while the cost of bitcoin and other cryptocurrencies has fallen by 50% from their record highs in November. As of Friday morning, the price of bitcoin was close to $20,000, down 57% from January.
Since the beginning of digital assets more than ten years ago, crypto payments have been a slow burner.
Retailers have been troubled by price volatility and a lack of interest in scaling solutions like the Lightning Network, but accounting company Deloitte predicts that will soon change, with 75% of merchants accepting cryptocurrencies over the next two years.
Users can utilize their funds at more than 80 million international retail places that accept Visa cards with the exchange’s Visa debit card, which functions similarly to one from a regular bank. Users using the card are not assessed any processing or administrative fees by FTX.