The top executives of the organizations believe that there are significant barriers to the adoption of Bitcoin as a payment instrument, such as regulatory problems, volatility, and high transaction fees.
Bitcoin is still an investment instrument, and the only thing that has changed in Bitcoin payments since 2014 is that they have become more accessible. CEO of the blockchain division of JPMorgan (Onyx) Umar Farooq, the director of the blockchain at ING financial conglomerate Mariana Gomez de la Villa, and the head of Visa blockchain division Kai Sheffield, note this at the online event Forbes Blockchain 50, reports Cointelegraph.
All three executives agreed that Bitcoin is still a store of value. Farooq stressed that the availability of bitcoin payments is the only major change in this area over the past 7 years. According to Farooq, users can use Bitcoin to pay for goods and services, but the volatility of the cryptocurrency and regulatory restrictions make this meaningless.
Sheffield noted that Visa sees growing demand from customers wanting access to bitcoin, however many still view cryptocurrency as a “savings account.” De la Villa supported her colleagues, saying that high transaction fees are another barrier to accepting Bitcoin as a payment.
Farooq also mentioned the investment bank’s own stablecoin, JPM Coin. He stressed that JPM Coin is not a cryptocurrency. It was created to meet the needs of the bank’s corporate clients who wanted access to programmable money. According to Farooq, stablecoin is more like money issued by central banks.
All participants in the conversation agreed that stablecoins can be a useful tool for conducting cross-border transactions. Sheffield noted that Visa is keeping a close eye on the stablecoin ecosystem, with a focus on assets that are pegged to US dollars. Recall that at the end of March, the payment system announced that it would allow the use of the USD Coin (USDC) stablecoin for settlements in its network. However, USDC will not need to be converted to fiat currency.
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