- Visa CEO Al Kelly, has shared his thoughts on cryptocurrencies
- During the interview, he said that he does not see cryptocurrency as a threat to the company.
- Crypto companies promote USD-backed digital coins to provide viable payment options to wild traders such as bitcoin.
In an interview with Mad Money host Jim Cramer, the VISA CEO, Al Kelly shared his thoughts on the rise of blockchain and cryptocurrency. According to him, he doesn’t find these digital innovations likely to pose a threat to the international credit card company. He also mentioned that VISA, one of the biggest financial service companies, won’t get into the crypto business until cryptocurrency has become a more established payment instrument.
Not yet an established financial instrument
“I think there has to be some market that it becomes somewhat like a fiat currency in order for us to be comfortable,” Kelly said in an exclusive interview with “Mad Money” host Jim Cramer, adding that crypto was “certainly” not a threat in the short to medium term “in any way.”
U.S. dollar, Euro, and other fiat currencies are all issued and backed by governments. Some currencies that are backed by physical commodities such as gold or silver. There are cryptocurrencies which are backed by precious metals, while others are considered as having ‘inherent’ value.
“If it goes in that direction, we will move in that direction. We want to be in the middle, Jim, of every payment flow in the world regardless of how it happens or what the currency is behind it. So if we have to go there, we will go there. But right now, it’s more of a commodity than a payment vehicle,” the Visa CEO added.
Viable Payment Alternatives to Wild Traders
Two companies that support the cryptocurrencies recently announced their joint venture. Coinbase and Circle launched stablecoins or U.S.-dollar-backed digital coins to provide viable payment options to wild traders such as bitcoin.
Although digital currency market was able to withstand the stock market’s most recent sell-off, cryptocurrencies’ growth is still volatile and fragmented. However, during mid-October this year, digital currencies lost about 18 billion dollars in market value.
On the other hand, shares of Visa rose by nearly 5 percent in trading as of Thursday. This happened as stocks mounted a recovery from the brutal sell-off last Wednesday. In the most recent earnings report, Visa’s earnings topped the Wall Street estimations, raising global confidence in the stock.