[Bitcoin Now] Approaching 70 Million Won... Impact of Visa Coin Payment Introduction

VISA Introduces Cryptocurrency Payments... Payment Companies Rush to Adopt Coin Payments

Photo by Getty Images Bank

[Asia Economy Reporter Gong Byung-sun] The leading cryptocurrency Bitcoin has surged close to 70 million KRW. The news that credit card company Visa is introducing cryptocurrency payments appears to have acted as a positive catalyst.

According to domestic cryptocurrency exchange Upbit, as of 2:35 PM on the 30th, Bitcoin recorded 68.94 million KRW, up 0.35% compared to the previous day. During the previous day’s trading session, it rose to 69.43 million KRW, marking the 69 million KRW level for the first time in 10 days since the 20th.

The rise in Bitcoin’s price seems to be influenced by the news that Visa is adopting cryptocurrency payments. On the 29th (local time), Bloomberg reported that Visa announced it is piloting a transaction system using 'stablecoins,' cryptocurrencies pegged to fiat currencies. Visa explained that, with the help of Anchorage, a cryptocurrency-specialized bank, it transferred stablecoins to Visa’s Ethereum wallet. Previously, Visa had partnered with cryptocurrency wallet companies such as BlockFi and Fold to facilitate cryptocurrency payments.

Other payment companies have also shown interest in cryptocurrencies for some time. Mastercard announced on the 10th of last month that it would use cryptocurrencies as a payment method. It collaborated with cryptocurrency payment platform companies Wirex and BitPay to create cryptocurrency debit cards. However, on the 26th, Mastercard CEO Ajay Banga stated, "Due to volatility, we prefer central bank digital currencies (CBDCs) or stablecoins over Bitcoin."

Mobile payment company Square has actively entered the cryptocurrency market since the past. It introduced cryptocurrency trading functions in 2018 and recorded related sales of $4.57 billion (approximately 5.18 trillion KRW) last year. Beyond providing services, it has also made direct investments. On the 23rd of last month, it purchased about $170 million worth of Bitcoin and currently holds 8,027 BTC. At current market prices, this amounts to approximately 553 billion KRW.

Simple payment company PayPal should not be overlooked either. On the 5th, PayPal announced plans to launch a dedicated business unit to cover payments, finance, and shopping beyond cryptocurrency trading. PayPal plans to support cryptocurrency payment functions at all online merchants within this year.

Meanwhile, the world’s largest asset management firm Fidelity has expanded cryptocurrency-backed loans. On the 29th (local time), U.S. economic media Business Wire reported that Fidelity will provide cryptocurrency-backed loan services in cooperation with Silvergate, a cryptocurrency-specialized bank. Silvergate Bank will lend to institutional investors using Bitcoin held in custody by Fidelity as collateral. Previously, in December last year, Fidelity entered the cryptocurrency-backed loan market by partnering with BlockFi.