Credit card company VISA announce today it is connecting it's global payments network of over 60 MILLION merchants to the ERC 20 token USDC. So what exactly does this mean in terms of the future of crypto and the Ethereum block chain? Let's dive in...
One of the biggest benefits of this move is the fact that USDC can be sent anywhere in the world quickly and securely. By doing so that USDC can be converted into the national currency and spent anywhere that accepts Visa.
This is most likely to start happening in large scale with corporations some time early next year. It will allow businesses to send and receive funds in USDC via the support of VISA.
VISA has over the years already managed many partnerships with companies such as Fold and Cred which each can start up their own USDC integrations. In fact BlockFi announced just yesterday it will launch it's bitcoin rewards Visa next year. It will also be using USDC in the first quarter of 2021.
What does all of this matter? Faster times, lower fees.
Right now over $120 trillion is transferred around the world annually in the form of checks and wire transfers which takes DAYS and clearing time. Each which costs around $50 each. Most of this can be done on the block chain within minutes now and with drastically lower fees. The first large scale crypto adoption.
USDC is a stable coin which is backed by a 1:1 ratio of USD or united state denomination. These are audited by an accounting firm Grant Thorton and ensure the actual amount is always there. You know those funny days of where Tether some how should be backed by a 1:1 ratio but auditors abandoned them. Still makes me highly question Tether big time.
USDC was formed as a 1:1 backing for the USD and saw it's first major action in MakerDAO protocol. It was what you would call the first DeFi or Decentralized finance market that allowed for loaning and barrowing money.
Currently DeFi see's a total of $42 Billion locked up. while Maker has nearly 7 billion in it. a massive but slowly declining 16.59% of the DeFi market share. You can always view this here at DefiPulse
Most of us learned with DeFi was here at LeoFinance. I myself crash coursed a large part of setting it up in the course of a day. While there is still much more to learn about it the DeFi platform which offers awesome products is CubDefi.com
DeFi was once called DOA or Distributed Autonomous Organization. So what does that mean for the future?
Nearly all of these are built on Ethereum. Ethereum itself has such a robust and massive amount of platforms that are using it that it's honestly going to take a ton of effort from all these other so called Ethereum "killers" to take it's place. But to be honest with you I don't see anything "killing" off Ethereum any time soon. If anything I see Ethereum growing to possibly one day out beat slow and sluggish bitcoin.
Of course this article wouldn't be complete without talking about banks. You know those greedy some how legal loan sharks. That's honestly how I look at them. While they might not come and beat the heck out of you for not paying they will happily and legally take everything from you if you don't pay up. Even if they loan you the money knowing you can never pay it back. Really makes you think...
Well Banks want in on this action of course and because of that they are looking to release their own. This one being called. DeFi is aimed to remove these banks and instead allow people to do more P2P trading. In fact the first start of this at least I believe is bank when P2P lending platforms such as LendingClub etc sprouted up. Well sadly many of those are having to start shutting down services in certain states. Which means banks and major corporations are now starting to creep their way into crypto and gain control. Everything Bitcoin and these other platforms where built to remove. But for some reason we are all welcoming it as if we are going to get rich off of these moves. It's possible so STOCK UP!
Posted Using LeoFinance Beta