We’re always seeing competing technologies eventually integrate into something greater. Yet, no one expected it between blockchain and major credit card companies. Considering that blockchain is the backbone of bitcoin, credit cards were direct competitors in creating a digital currency.
Now the tables have turned with Visa recently acquiring blockchain for a more transparent and private payment system.
It’s quite a development after years of competition. The real reason behind the blockchain/Visa merge is more about symbiosis.
BitPay and Visa
Last year, BitPay, a company creating bitcoin, linked up with Visa to create a branded credit card using bitcoin. One reason this occurred was because bitcoin developers realized many merchants still prefer using credit card services over digital currency.
This shows cryptocurrency is still in the fringe with many people. Most of this is merely due to trepidation in switching to something new rather than convenience.
Having Visa and BitPay working together basically created a relationship to help one another.
Bitcoin Used in Other Credit Cards
Visa isn’t the only one teaming up with digital currencies to create a hybrid bitcoin. Companies like BitPlastic recently teamed up with MasterCard for bitcoin debit cards. You also have digital companies like CryptoPay working with Visa to help bitcoin have more spending power in the real world.
As such, it’s inspired Visa to look into using blockchain more often. Even if they still find using bitcoin a problem, the backbone technology of blockchain could revolutionize how we use credit cards systems.
Blockchain Creating More Secure and Transparent Payments
The goal is to rid the private exchange middlemen that credit cards continually rely on to send a payment from one place to the other. Since blockchain is a distributed ledger, all payments have far more security as well as transparency.
Any disputes on credit cards can quickly become resolved. Credit card companies also wouldn’t have to worry about fraud since blockchain creates a solidly private network.
Some look at this as a return to the original vision for Visa, something its old founder wanted to turn into an official digital currency.
It’s an example of how merging two disparate things helps technology advance faster when the individual parts falter due to circumstance.
Keep reading us at Blockchain Revolution as we continually explore blockchain’s possibilities.