Visa and Bridge Launch Stablecoin Linked Cards in Latin America

Summary:

Visa and fintech startup Bridge have introduced stablecoin-linked Visa cards across six Latin American countries, enabling users to make everyday purchases using cryptocurrency tokens. Bridge, recently acquired by Stripe, will manage backend transactions, converting stablecoins to local currencies for merchants. This move aligns with potential U.S. legislation to regulate stablecoins, signaling a shift toward mainstream crypto adoption.

Key Takeaways:

  1. Visa and Bridge Partnership: Visa collaborates with Bridge to offer stablecoin linked Visa cards in Argentina, Colombia, Ecuador, Mexico, Peru, and Chile, facilitating everyday crypto transactions.

  2. Stripe's Acquisition of Bridge: Bridge, now a Stripe subsidiary, handles backend operations, converting stablecoins to local currencies, ensuring seamless merchant transactions.

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Visa and Bridge have partnered to launch stablecoin linked Visa cards in Latin America, enabling users to make everyday purchases using cryptocurrency tokens. Bridge, recently acquired by Stripe, will handle backend transactions, converting stablecoins to local currencies for merchants. The cards will be available in Argentina, Colombia, Ecuador, Mexico, Peru, and Chile, with plans to expand to Europe, Africa, and Asia. This initiative comes as the U.S. Congress considers legislation to regulate stablecoins, potentially paving the way for broader adoption in the financial sector.

Stablecoins, designed to maintain a constant value, typically pegged 1:1 to the U.S. dollar, are popular among crypto traders for transferring funds between tokens. However, their use in everyday purchases has been limited due to merchants' reluctance to accept crypto payments. This partnership addresses that challenge by integrating stablecoin transactions into Visa's extensive payment network.

Bridge's backend system will deduct funds from users' stablecoin balances and convert payments into local currencies for merchants. This ensures that consumers can utilize stablecoins for purchases while merchants receive payments in their preferred currency.

Jack Forestell, Visa's Chief Product and Strategy Officer, stated, "We feel like the moment is now to take some of the things that we've already been doing in a more experimental, pilot basis and start to expose them to the world as capabilities that we anticipate will really start to become big and meaningful and globally scalable."

Zach Abrams, CEO of Bridge, emphasized the importance of interoperability, saying, "This enables folks to use and take advantage of the benefits of stablecoins wherever they are in the world, but remain wholly connected with the financial tools that folks use."

The collaboration between Visa and Bridge marks a significant step toward integrating cryptocurrency into everyday financial transactions. By enabling stablecoin-linked Visa cards, this partnership bridges the gap between digital assets and traditional payment systems, potentially paving the way for broader adoption of cryptocurrencies in daily commerce.