Payment giant Visa has announced the launch of a pilot program that will allow businesses to use stablecoins for international settlements. This step is expected to accelerate cross-border payments. This was reported by UNN with reference to Reuters.
Details
The new initiative by payment giant Visa aims to solve two key problems. The first is that banks and companies, by pre-funding their accounts with stablecoins, will free up significant amounts of cash that they previously had to "freeze" around the world to cover local payments. The second is that expensive cross-border payments will become faster and cheaper, as they will no longer depend on the schedules and conditions of banks or other financial institutions in different countries around the world.
A key impetus for the emergence of a pilot project using stablecoins was the adoption of the "Genius Act" in the US, which established clear rules for stablecoin issuers. The adoption of this document gave confidence to large players and participants in the financial market. Although regional participants openly express their concern, as there is a high probability of them losing part of their income from international transfers.
However, Visa noted that this project is not about creating a new payment system from scratch. Stablecoin technology will be integrated into the existing global infrastructure.
Recall
A stablecoin is a digital equivalent of the dollar that can be instantly and cheaply transferred via blockchain without the intermediation of banks. That is why it is considered an ideal tool for payments and settlements. In addition, it is backed by traditional assets such as the US dollar or Treasury bonds.