Bitcoin price rallies as VISA announces cryptocurrency payments
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.
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.
Disclosure: The author owns a range of cryptocurrencies at the time of writing