Visa is considered the standard when it comes to comparing transaction speed, costs and availability of service.
This does not only hold true for other conventional financial services, but sometimes also transcends to the world of cryptocurrencies, where popular blockchain networks such as Bitcoin and Ethereum are compared with Visa’s prowess when it comes to transaction statistics.
However, while no one in the cryptocurrency industry denies how fast the Visa network is and the good things that can be derived from its current functionalities, it does not seem like Visa officials return the same sentiment.
visa cfo says bitcoin and other cryptocurrencies are not good for payments or investments
In an interview with the Financial Times, Vasant Prabhu, the chief financial officer of Visa, shared his candid views on cryptocurrencies.
According to Prabhu, due to the way cryptocurrencies function, they cannot be held as a reliable payment method for the everyday user. However, he was quick to mention that when these cryptocurrencies are looked at as a preferred payment method, it is usually done by someone who is either a “crook” or a “dirty politician”, or simply a naive person who has got “no clue” of what cryptocurrency means.
He stated that due to not having any financial backing whatsoever, cryptocurrencies cannot be used as a reliable payment method. Elaborating on this, he stated that fiat always has government backing for anyone to know where it came from or who is held responsible for it, whereas, this is hardly the case for cryptocurrencies where no one knows where to turn to if something goes south or the value suddenly drops – which in the first place is based on speculation.
He also mentioned that due to the craze that surrounds cryptocurrencies nowadays, it is often worrisome to see how people who are the most willing to invest in cryptocurrencies are those who have no idea of how these digital coins actually work.
“This is the ultimate thing that you hear about when you have a bubble, when the guy shining your shoes tells you what stock to buy.” He stated.
While Prabhu’s comments remain harsh at best for cryptocurrencies, Visa is currently looking into blockchain technology to facilitate fiat-based, cross-border payment transfers – which is an approach that almost all central entities seemingly take these days: bash on cryptocurrencies, but adopt the technology behind them.