Bitcoin price rallies as VISA announces cryptocurrency payments - finder.com.au

Bitcoin price rallies as VISA announces cryptocurrency payments

Posted: 30 March 2021 12:01 pm
News
btcprice30march_finder_1800x1000

Bitcoin is on the move again following big news from VISA and Fidelity.

  • Bitcoin back above $75,000 (US$57,000) after a week of sideways price action.
  • VISA to trial USDC payments with Crypto.com cryptocurrency debit card users.'
  • Fidelity lodges application to offer a Bitcoin ETF in the US.

Bitcoin is currently trading for $75,494 (US$57,660) which is a 3.8% increase over the past 24 hours.

Price rallied immediately following the announcement by VISA that they had begun trialling cryptocurrency payments through their network, using the Ethereum based USDC stablecoin. Bitcoin's value rose by nearly $2,600 over just three hours following the news, while ETH has steadily risen 8.1% over the past 24 hours.

According to Reuters, VISA is working with cryptocurrency platform Crypto.com to enable stablecoin payments for Crypto.com VISA debit card holders. Normally when a user makes a purchase with a cryptocurrency debit card, cryptocurrency is converted to fiat currency (ie, US dollars) to settle the payment.

Under the new model being trialled, users who hold USDC stablecoins will be able to make purchases directly using the Ethereum blockchain with VISA accepting the cryptocurrency as payment. USDC is received by VISA directly, which now has an Ethereum address custodied by digital asset custodian Anchorage.

Compare cryptocurrency debit cards

Visa intends to extend the trial to more partner gateways later in the year, which could lead to a wave of adoption of cryptocurrency debit cards, which offer features such as cashback in bitcoin and cryptocurrency.

Crypto.com's native token CRO rose by 9.8% following the news.

Legacy finance embracing Bitcoin adoption

Mike Novogratz, CEO of cryptocurrency investments powerhouse Galaxy Digital, has predicted that US$1 trillion could flow into Bitcoin thanks to the ongoing wave of institutional adoption. Novogratz expects that Bitcoin will soon escape its generational bubble, with baby boomers the next to adopt digital gold.

While optimistic claims by Bitcoin bulls are nothing new, Novogratz's claims are supported by recent research by JMP Securities that $1.5 trillion of wealth from managed funds could flow into Bitcoin. The firm points to the string of recent announcements by firms like Morgan Stanley, JP Morgan and Goldman Sachs to offer clients exposure to Bitcoin to some degree.

Fidelity Investment's hope to further open the door to Bitcoin adoption by launching a Bitcoin ETF in the US. So far there have been 6 attempts to list a BTC ETF in the US, with all having been rejected by the SEC, arguing the market was not ready. Given the recent maturity and acceptance of the Bitcoin narrative in US markets, and the ongoing success of multiple Bitcoin ETFs in neighbouring Canada, an ETF listed by powerhouse Fidelity may finally be what the SEC needs to give the greenlight.

Interested in cryptocurrency? Learn more about the basics with our beginner's guide to Bitcoin, dive deeper by learning about Ethereum and see what blockchain can do with our simple guide to DeFi.


Disclosure: The author owns a range of cryptocurrencies at the time of writing

Disclaimer: This information should not be interpreted as an endorsement of cryptocurrency or any specific provider, service or offering. It is not a recommendation to trade. Cryptocurrencies are speculative, complex and involve significant risks – they are highly volatile and sensitive to secondary activity. Performance is unpredictable and past performance is no guarantee of future performance. Consider your own circumstances, and obtain your own advice, before relying on this information. You should also verify the nature of any product or service (including its legal status and relevant regulatory requirements) and consult the relevant Regulators' websites before making any decision. Finder, or the author, may have holdings in the cryptocurrencies discussed.

Picture: Getty

Latest crypto guides

Ask an Expert

You are about to post a question on finder.com.au:

  • Do not enter personal information (eg. surname, phone number, bank details) as your question will be made public
  • finder.com.au is a financial comparison and information service, not a bank or product provider
  • We cannot provide you with personal advice or recommendations
  • Your answer might already be waiting – check previous questions below to see if yours has already been asked

Finder only provides general advice and factual information, so consider your own circumstances, or seek advice before you decide to act on our content. By submitting a question, you're accepting our Terms of Use, Disclaimer & Privacy Policy and Privacy & Cookies Policy.
Go to site