Payments giant Visa has formed a Global Crypto Advisory Practice for banks and financial institutions amid growing demand for digital assets.
Visa said in a statement that understanding the crypto ecosystem is a vital first step “for financial institutions eager to attract or retain customers with a crypto offering, retailers looking to delve into NFTs, or central banks exploring digital currencies”.
Carl Rutstein, Global Head, Visa Consulting & Analytics, said:
“We’ve seen a material shift in our clients’ mindset in the last year, from a desire to explore and experiment with crypto, to actually building a strategy and product roadmap.
Visa said it was working with clients and partners in every region. Visa mentioned that American Bank UMB Financial Corporation is already a client of its crypto advisory practice.
Visa’s Global Crypto Advisory Practice
The crypto advisory service is aimed to help banks and other financial institutions develop their digital asset businesses as demand for various crypto products continues to grow, the company said in a statement.
“We think it’s a critical role for Visa to play to help be this bridge between banks and the crypto ecosystem,” states Visa’s head of crypto Cuy Sheffield. “Every bank should have a crypto strategy.”
Visa’s crypto advisory team will work alongside the company’s consulting and analytics group to advise banks on their crypto strategy and execution, as well as helping banks build dedicated crypto teams.
Sheffield says there’s been an inflection point over the last nine months in which banks have started to recognize their consumers want access to crypto. Meanwhile, they also want to figure out how they can better serve crypto businesses such as exchanges and wallets, according to Sheffield.
Visa crypto cardholders spent over US$1 billion worth of cryptocurrency globally on goods and services in the first half of 2021.
Visa Focusing On Crypto To Build The NextGen Payment Network
Visa is advancing its cryptocurrency and NFT capabilities to build the next generation payment network. In a recent job post “Head of Strategic Initiatives (f/m/d) – Alternative Payments and Digital Solutions“, new solutions are focused on building the next generation payment network.
The new payment system is expected to provide “the flexibility to use a variety of payment instruments – from cards to tokens and bank accounts or representative identity”.
This is in line with previous announcements of Visa related to Bitcoin and other digital currencies. There are currently over 35 digital currency platforms and wallets that are available to Visa users.
In March, Visa CEO Kelly stated: “there’s a “strong potential” for cryptocurrency to become new payment vehicles, particularly in emerging markets.” Visa has also announced its plan to enable Bitcoin across its global payment network of over 70 million merchants.
Consumers Are Willing To Switch Banks To Adopt Crypto
According to a recent study by Visa, 18% of survey participants said they would be likely or very likely to switch their primary bank to one that offers crypto-related products in the next 12 months. Surprisingly, this figure jumps to 24% in emerging markets. Among consumers who already own cryptocurrency, the study found that nearly 40% are willing to make the switch.
Read Also: Young Americans Embrace Crypto Economy
Visa study found that 42% of survey participant believe crypto as the future of financial services that drives them to own and use cyptocurrency. And, 41% believe it as a way to build wealth.