Visa, MasterCard, and PayPal- arguably the biggest names to associate themselves with global finances in the last few decades have finally come around to digital currencies and the promise they hold for the future. Whether it has to do with the crushing pressure that has been put on the financial sector by the weight of 2020 and all of the things that have come to pass this year- global pandemics, uproarious elections, and departures from historic alliances- or whether it all has to do with cryptocurrencies finally getting their due regard is anyone’s guess.
What is known is that some of the biggest names in finance have created better payment options for those who use bitcoin regularly. And show no signs of stopping in 2021. Exchanges, like Bitvavo, and others are finally seeing these financial dinosaurs extend better infrastructure for using debit and credit cards to support payments. After such historic movements made to legacy finance in 2020, it has us all wondering: What’s next for crypto in the coming year.
Visa and MasterCard Step Forward
Despite a history of a less than fond friendship between the two credit giants and bitcoin, both Visa and MasterCard have come with much more favorable support of payment processors for bitcoin and other cryptos as of last month. Historically, both of the global payment platforms cracked down on crypto transactions, notably after bitcoins 2017 spike. Where in the last few months, both payment processors have not only instituted favorable infrastructure and attitudes towards crypto- but have been actively seeking further support for this new embrace of the space.
So while this about-face may seem moderately hypocritical to the casual observer whose memory can outlast that of a goldfish- it’s actually an incredibly savvy business move on the part of global payment systems like Visa and MasterCard. Specifically, as crypto exchange platforms continue to gain traction alongside the rise of digital currencies. This seems to be pointing to a firmer future when it comes to how the world looks at finance, and the role that bitcoin will play.
PayPal Begins Single Payment Portal
PayPal, keeping in step with several different exchange platforms, similar to that of Bitvavo, have also started offering single payment portals for bitcoin. Where normally clients that would wish to either pay with, or purchase bitcoin from the platform would need to go to a third party to convert between debit/credit cards and bitcoin itself. Often making the payment process unnecessarily complicated, and for many, cost and time prohibitive. However, now that payment giants like PayPal and Visa are accepting bitcoin transactions, they have opened up an entirely new portal for crypto-based e-commerce.
With fewer roadblocks on the highway to crypto adoption, it seems that more legacy financiers are beginning to look at cryptocurrencies like bitcoin as the new way forward- something that die-hard crypto fans have been saying for years. However, what has drawn legacy financial markets towards bitcoin and other cryptocurrencies still largely remains a mystery. As few have actually come out to endorse digital currencies over fiat. However, it now seems fairly obvious that even the biggest names in personal finance believe that bitcoin holds promise for the future, and are doing everything they can to stay in front of what appears to be the next big move for the financial sector.
Why Bitcoin is Suddenly on the Table
These moves are surely just a predicate to those that will soon be seen by all financial services that don’t want to be ground into dust when it comes to the future of technology. As DeFi and better investment options continue to mount within the crypto space, decentralized and open-source software and shareware become the key to how the world will soon use technology. This is largely because of the incredible demand we already place on the technologies we have- where proprietary structures are just not capable of sustaining the ecosystem where burgeoning technologies like the Internet of Things (IoT) are bound to take us.
Nearly forcing the hand of most software and finance providers into switching to open source platforms and decentralized infrastructure. These platforms are much more capable of “speaking” global languages and performing tasks across global boundaries. For the financial industry, this works just as well for companies as it does clients. Aiming to save traditional payment processors millions of dollars or more, just by making the switch to decentralized digital currencies. Which could signal a much-needed change in traditional finance that benefits both parties.