Visa will make available to Brazilian banks two tools that are already in use abroad. And both use blockchain technology.
One of them is Visa B2B Connect, which allows international transfers to be made. The other, launched in February, will allow these institutions to offer cryptocurrencies to their customers.
The launch was confirmed by Eduardo Abreu, Vice President of New Business at Visa do Brasil, in an interview with the BlockNews portal.
According to the executive, cryptocurrencies are here to stay. And it is not up to financial institutions to try to fight them, but to adapt.
“We have to be close to this technology, which is a trend and is here to stay. And don’t be fighting with her ”, added the executive.
Visa seeks partners in Brazil
The use of cryptocurrencies by banks will work through APIs developed by the company. The infrastructure makes transactions through Anchorage, a digital bank that operates with cryptocurrencies.
In 2019, Visa announced a vice-presidency with an exclusive focus on cryptocurrency transactions. Since then, advances have been exponential.
Visa currently offers cryptocurrency services in Brazil. Alter and Zro.bank banks are the pro-crypto institutions served by the company. However, new banks may be on the way.
According to a survey by Cointelegraph Brasil, digital banks Nubank, Inter and C6 are on the list. Currently, these institutions offer Mastercard-branded cards.
“First, we are talking to the most digital banks. That’s because they have the most profile for these (cryptocurrency) customers ”, revealed Abreu.
The Visa executive also spoke about the regulatory environment in Brazil. For him, there is an intention to create beneficial regulation instead of harming the market.
The regulation has always been frowned upon by the fiercest defenders of Bitcoin, who consider this a violation of the principles of cryptocurrency. However, Abreu disagrees with this view.
“At the end of the day, that is not the goal. Satoshi Nakamoto created it not for that, but to be democratic. It is to facilitate payment between people and currencies in different countries. And this exchange is exactly what Visa does, ”he said.
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Avalanche of Institutions To Descend on Crypto Markets Over Next 12 to 18 Months: SkyBridge Capital CEO
The CEO of global investment firm Skybridge Capital is predicting that the crypto markets will see more institutional interest in the next 12 to 18 months.
In a new episode of The Best Business Show, Anthony Scaramucci tells host and Bitcoin bull Anthony Pompliano that more institutional investors will likely jump into the crypto bandwagon as regulators move to clear the hurdles involved in buying and holding digital assets.
“I’ll make a bold prediction, Anthony. I think there’s going to be institutional interests over the next 12 to 18 months because you now have gotten the regulatory box checked and that checking of that box is going to lead to institutions saying, ‘Hey I got to get in this thing. I’ve got to own a piece of this. I’ve got to understand it,’ and what would George Soros say? He would say ‘Invest and investigate later.’”
Scaramucci considers the possibility that BTC, which is currently worth $61,354.19, may trade back to $50,000, but he says that the top crypto will likely breach the six-digit mark after the U.S. Securities and Exchange Commission greenlighted the first batch of Bitcoin futures exchange-traded funds (ETF).
“It’s likely to get to $150,000 over the next 12 months. I’m going to stick with my earlier price target that I shared with you on our SALT talk when you did my podcast. I think it’s a hundred thousand by year-end. I just think it’s that because there’s now a gateway opened… A gateway opened yesterday where an institution can now say ‘I can buy this.’
…Some of my friends said, ‘Well I’m not getting vaccinated until the FDA approves the vaccine.’ So that sort of metaphorically happened for Bitcoin. You got an approval from the SEC. Bitcoin lives in the financial regulatory ecosystem, and it’s not going anywhere and now, that portal has opened for a sophisticated early-adopting institution to say ‘It’s okay for me to step in the water here. I’m not going to get fired if I own this thing.”
In Argentina, several businesses accept payments in BTC, DOGE, other cryptos
Imagine going on vacation and being able to pay both your Uber driver and Airbnb host with crypto. This sounds like a fantasy for many but is reportedly now a reality for users in Argentina.
Regional news publications announced that the crypto company Bitrefill was offering 138 prepaid cards in order to pay to different businesses. Some taking part in the initiative include Frávega, Lacoste, Dexter, Isadora, Cheeky, Airbnb, Uber, Movistar, Claro, and Personal.
Users can pay in six different cryptocurrencies, which are Bitcoin [BTC], Ether [ETH], Dogecoin [DOGE], Litecoin [LTC], Tether [USDT], and Dash [DASH]. However, in order to use the card, assets are first converted to dollars or euros, and then converted again to Argentine Pesos [ARS] to complete the transaction.
What does Bitrefill’s initiative reveal about the state of crypto adoption in Argentina? Data may hold the answer. The Blockchain LatAm Report 2021 by Sherlock Communications stated,
“…66% of respondents were most concerned with protecting their savings. This reflects recent inflation rates in the country: 36.1% in 2020 and 53.8% in 2019, the highest in 28 years.”
Furthermore, as people in Argentina are legally restricted from buying more than a small and taxable amount of U.S. dollars every month, the attraction of crypto is easy to understand. Adding to this, there are around 20 legal crypto exchanges in the country, and one of them – Ripio – hit a million users in 2020.
However, it’s worth noting that there is a tax of 15% on income gained from selling digital currencies. At the last count, there were 12 Bitcoin ATMs/tellers in Argentina. Out of these, 11 were located in Buenos Aires.
Not just a shopping spree…
Apart from crypto adoption, companies are also eyeing the country as a destination for Bitcoin mining. One major reason for this is the cheap cost of electricity in Argentina, with subsidies for the same.
In October, the Canada-based Bitfarms announced that it was constructing a 210 megawatt BTC mining farm in Argentina. More than 55,000 new mining rigs are expected to be on-site. According to the Cambridge Bitcoin Electricity Consumption Index, Argentina’s share of the average monthly hashrate in August 2021 was 0.05%.
China’s Central Bank’s Former President Introduces Reason Behind Country’s Crypto Crackdown
Former president of People’s Bank of China believes that traditional cryptocurrencies cannot become a convenient payment tool inside of traditional economic systems
The former president of the People’s Bank of China shared his view on CBDCs and their part in the modern economy, additionally commenting on the real reason behind the crypto crackdown in the country.
He believes that while other countries use different ways of implementing digital currencies in their economic systems, China will find and use the best possible way.
As Zhou Xiaochuan stated, the most basic function of currency is as payment; otherwise, it is inherently useless in the traditional economic system. While the currency may have a storage function, it must be useful for payments.
With the introduction of CBDCs, the economy will reap numerous advantages like reduced costs, higher convenience and stability. They are more convenient and offer more flexibility than traditional payment methods. Businesses will also benefit from the digitalization of the economy. Small enterprises will be able to create a more effective and easier accounting framework.
Referring to the most recent actions coming from the Chinese government toward traditional cryptocurrencies and mining, Zhou said that it is the “survival of the fittest” since the decentralized blockchain-based digital currency is not the most convenient payment method for traditional economies.
Most likely, the former president of the Central Bank of China referred to problems that modern cryptocurrencies have with the scaling that includes fees, network congestion and the speed of transactions.