Visa CEO Alfred Kelly: We Will Not Work with Bitcoin Directly
CryptoBit News Today2 min read
In an earnings call this month, Visa's CEO has ruled out working with Bitcoin directly.
"What I'm seeing from the financial institutions, their appetite to actually go and tie their systems directly to Bitcoin, is very limited," said Alfred Kelly in the call.
"Certainly, I don't see that for Visa. And if you look at the payment providers, they haven't made that jump. So, I would be very surprised if you see that." ## Why Visa's stance matters
It's a significant moment in Bitcoin's mainstream adoption. Visa is one of the most important infrastructure players in the global financial system.
If Visa won't work with Bitcoin, other major financial institutions are unlikely to. And as Visa noted, so far Bitcoin has struggled to win converts among payment providers.
There's a precedent for this kind of cycle. A decade ago, major financial players were equally uninterested in the rise of the Zelle instant payment network. Visa, Mastercard and others developed their own competing systems, instead. The world's banks signed up to those in their droves. Still to this day, few major banks want to work with Zelle. ## An overwhelming majority of Bitcoin purchases are made with credit cards. If Visa won't facilitate direct transactions on its network, doing so could be an increasing challenge.
This isn't necessarily fatal to Bitcoin. Visa's statements do, however, cast doubt on the possibility of a return to those highs in the near future. ## Visa looks to capitalize on Bitcoin growth
Visa is still looking to capitalize on the growth of Bitcoin. It invests in Bitcoin companies, where the chips fall where they may. And it provides a credit card network.
Last year, for example, it struck a deal with digital coin exchange CoinCorner and Bitcoin payments provider BitPay. The companies now issue Visa cards which allow anyone to spend Bitcoin on Visa's global payments network.
Yet the caveats are clear. Bitcoin is not tied directly into Visa's payment system. And Visa has the same credit card business relationships it did before.
Adoption of Bitcoin will be far harder if Visa keeps this stance. But unless there's a dramatic turnaround, it seems likely to be the path of least resistance for now.
