It's easy to buy cryptocurrencies, but when it comes time to convert your crypto back to fiat money, the task can be very cumbersome and fraught with fees. Many platforms have optimized the conversion from fiat to crypto but left conversion in the other direction to the consumer's imagination. In some cases, platforms may even freeze accounts, not allowing conversions back to fiat. Customers may often simply park their crypto in stablecoins on the platform rather than withdrawing them.
Visa is looking to change this equation with easy crypto to fiat conversions. Visa will allow customers to easily convert their crypto to fiat and spend it at nearly 130 million participating merchants where Visa is accepted.
This new program is called VisaDirect. It works with Transak, a partner, who has access to over 40 cryptocurrencies. Transak is also present in over 350 wallets, including Web3 wallets such as MetaMask, Trust Wallet, Coinbase Wallet, Ledger, Splinterlands, and Decentraland, providing widespread access. Traditional banking transfers can take days. VisaDirect says it can convert crypto to a consumer's local currency in as little as 30 minutes.
A fiat wallet allows consumers to hold their local currency while interacting with cryptocurrencies. These wallets are used for buying or selling cryptocurrencies.
People buy, trade, and invest in cryptocurrencies for many reasons. These reasons include independence from the financial system, an increase in value, no middleman between each transaction, and the ability to easily transact across borders. Anonymity used to be a reason to use crypto. However, agencies such as the FBI can identify who is behind transactions. It seems cash is still best for anonymity.
In countries with unstable financial systems, crypto provides a means to buy goods and pay for services. The government cannot confiscate one's crypto as they might with fiat currencies. Using the traditional banking system, cross-border transactions can take days to complete and incur high fees. Cross-border crypto transactions occur in seconds, and fees are far less.
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