Credit card giant Visa has taken an important step that will strengthen the place of cryptocurrencies in the traditional financial world. The company has announced a new product that will enable stablecoin payments in six countries in Latin America, including Mexico and Argentina. Developed in collaboration with Stripe-affiliated technology startup Bridge, the solution aims to make cryptocurrencies a part of everyday commerce for both consumers and businesses. Stablecoins are blockchain-based assets whose value is pegged to fiat currencies like the US dollar. They are quickly gaining popularity in traditional financial circles due to their easy transferability. Visa’s new service will allow a freelancer in Colombia, for example, to receive payments in stablecoins from the US and spend the amount with a physical or digital Visa card. Visa Vice President Rubail Birwadker said that stablecoin payments are integrated into Visa’s system, allowing businesses to receive instant payments in their own currency. Birwadker noted that many people in Latin America already hold stablecoins as a hedge against economic volatility, and that this new service will accelerate the integration of crypto assets into everyday use. Related News: New Developments in the Tariff Dispute Between the US and China - Is an Agreement Near? Chinese Sources Speak Out The new service will be available in six countries including Colombia, Ecuador, Peru and Chile. What makes this solution stand out is that it has been developed with more stablecoins, rather than cryptocurrencies such as Bitcoin, which have volatile prices. Visa’s technology partner Bridge was founded by former Coinbase employees Zach Abrams and Sean Yu and was acquired by Stripe for $1.1 billion in 2023. Bridge is described as a neutral technology provider that allows developers to create stablecoin-based financial services. Visa says that through this partnership, various third parties can develop their own applications and provide services to both consumers and businesses. The system, which will be implemented with the USDC stablecoin supported by Circle and Coinbase in the first phase, is expected to support different stablecoins and blockchain infrastructures in the future. Currently, the system will use the Ethereum network. Bridge CEO Zach Abrams stated that this structure will enable the rapid development of financial applications, especially in countries lacking complex fintech infrastructures. *This is not investment advice. Continue Reading: Important Development for Ethereum (ETH): Visa Takes Critical Step
