A
A

Visa CFO says crypto frenzy is waning

Thu 29 Jul 2021 ▪ 18h57 ▪ 3 min read — by Greg Hansen

Visa crypto cards transactions appear to have generated a significant portion of the overall transaction volume during spring 2021. However, the frenzy around digital assets is starting to wane, as Vasant Prabhu, Visa chief financial officer, told Bloomberg.

Testing the crypto waters

According to the report for the third financial quarter ending 30th June 2021, the system’s payment volume has risen by 34% reaching a figure of $2.7 trillion (~£1.9 trillion). Cross-border online transfers have increased by 56%, with digital asset transactions accounting for most of the surge.

“There was quite a big increase in crypto purchases,” especially in April and May, Visa CFO, Vasant Prabhu, told Bloomberg. “But by June it had begun to fall back.”

In April, the total capitalisation of the digital asset market exceeded $2 trillion (~£1.4 trillion), while for Bitcoin (BTC) it reached $1,095 trillion (~£0.78 million). Meanwhile, Ethereum (ETH) renewed its price high at $2,146.

In May, the market cap fell below $1.5 trillion (~£1.1 trillion), according to CoinGecko. The figure is currently estimated at $1.6 trillion (~£1.2 trillion).

Without support from the burgeoning crypto market, cross-border transfers are likely to drop, Prabhu warned. This kind of transfers proves to be among the most lucrative for the company due to high fees charged.

In April, CEO of Visa, Alfred Kelly, claimed the company was “extremely well positioned” in the digital asset sector. He also added that Visa had every chance to make digital currencies “safer, more useful and suitable for payments”.

In July, Visa reported its cryptocurrency cardholders spent more than $1 billion (~£0.72 million) in the first half of 2021. The company then revealed it was partnering with 50 leading digital asset platforms, including FTX and Coinbase, under its card programmes.

More than $1 billion worth of crypto has been spent by consumers globally in the first six months of 2021. Visa acknowledged this amount was primarily spent on goods and services through its crypto-linked cards. Crypto adoption continues scaling the heights!

Recevez un condensé de l’actualité dans le monde des cryptomonnaies en vous abonnant à notre nouveau service de newsletter quotidienne et hebdomadaire pour ne rien manquer de l’essentiel Cointribune !

A
A
Greg Hansen avatar
Greg Hansen

Belgium native who has a passion for writing. Since 2015 I have understood that the blockchain will radically change our lives, and I absolutely want to share my findings with you!

DISCLAIMER

The views, thoughts, and opinions expressed in this article belong solely to the author, and should not be taken as investment advice. Do your own research before taking any investment decisions.

Ne manquez aucune actu et abonnez-vous à Cointribune sur Google Actualités !