The primary reason for creating cryptocurrencies is to serve as legal tender that does not require the control of middlemen such as banks and governments. Cryptocurrency is intended to be a decentralized currency.
As per Forbes, Satoshi Nakamoto's goal when creating the world's first cryptocurrency in 2009 was to establish a decentralized payment system that would fundamentally alter how we buy and sell everything.
Visa Inks Partnership with FTX
After more than ten years, peer-to-peer networks like Nakamoto's original vision of Bitcoin and other cryptocurrencies have evolved into mainstream technologies. The majority of cryptocurrencies now serve as speculative assets rather than being used to facilitate daily transactions, luring investors who hope to sell their investments at a profit in the future.
This is especially true now that traditional financial institutions collaborate with established virtual currency platforms. According to TechCrunch, Visa is the latest company to expand its offerings in the digital coin open market space, this time partnering with crypto exchange FTX for a long-term global partnership.
The growth of digital assets has been enormous, to the point where it is no longer profitable for traditional financial companies to wait for crypto adoption. Even payment giants like Visa and MasterCard are incorporating crypto payments into their future plans.
Furthermore, the agreement highlights the provision of FTX-branded Visa debit cards to FTX clients worldwide. According to reports, customers in Latin America, Europe, and Asia will be the first to receive the new cards. The debit card is now being distributed throughout the United States. FTX has collaborated with Visa to launch crypto debit cards in 40 countries.
Visa believes that because cryptocurrency is driven by its user community, it is best to collaborate with the best crypto platforms to provide the best user experience.
"With this partnership, we're bringing together FTX, one of the largest and most innovative crypto platforms, with Visa and our network of 80 million merchant locations," Cuy Sheffield, vice president and head of the crypto at Visa, told TechCrunch.
As per a CNBC report, they are enabling card payments was critical to the market's growth beyond being a speculative asset or, to some, a store of value. The Visa collaboration makes it easier for merchants to accept cryptocurrencies without the need to invest in proprietary technology.
FTX Exchange Jumps 7% After Visa Partnership
Following news of a collaboration with payment powerhouse Visa, the token value of FTX increased by an unexpected 7%. This was first reported by CoinDesk.
Additionally, CoinDesk informs us that although cryptocurrency payments have lagged behind other forms of payment since the beginning of digital assets more than ten years ago, analysts believe this is about to change. They predict that within the next two years, 75% of merchants will accept cryptocurrency.
The shift in focus of industry giants like Mastercard and Visa to adopt cryptocurrency payment is evidence that the mainstream demand for cryptocurrencies has acted as the catalyst for change across payment networks.
