More than $1 billion was spent by Visa users on products and services through cryptocurrency-linked cards globally in the first six months of the year, the company said on Wednesday.
The global payments technology business also said it is joining forces with more than 50 cryptocurrency companies to let users frictionlessly convert and spend their digital currencies through its card programmes.
Visa's strategy to support digital currencies is simply to serve as a bridge between the crypto ecosystem and our global network of 70 million merchants
Akshay Chopra,
head of innovation and design at Visa for CEMEA
This agreement will give cryptocurrency holders with Visa cards the ability to spend at nearly 70 million merchants globally, even at those that do not accept digital currencies.
“Visa's strategy to support digital currencies is simply to serve as a bridge between the crypto ecosystem and our global network of 70 million merchants and 10,000 financial institutions,” Akshay Chopra, vice president and head of innovation and design at Visa for Central Europe, Middle East and Africa told The National.
“We just crossed the $1bn mark in spend on various crypto-linked programmes ... of course, that is only a small fraction of the total Visa card spend … but considering these programmes didn't exist in any significant way a year ago, it is an indication that they are slowly gaining traction.”
Some of Visa's partners in the cryptocurrency market include Circle, BlockFi and Coinbase, the cryptocurrency exchange that floated on the Nasdaq market in April. These agreements help Visa card holders spend from their cryptocurrency wallets at various merchants.
Visa is also working closely with various central banks to help them think through many considerations on how Central Bank Digital Currencies should be designed and how they could be integrated into the existing payment ecosystem.
“Cryptocurrencies have started to look like an evolution of money ... we want to ensure that our processes, products and solutions keep up with this evolution so that these new forms of money can be used in a safe, secure and reliable manner,” said Cuy Sheffield, vice president and head of crypto at Visa.
“Crypto is not just one thing, it is a general-purpose technology … that is leading to new innovations such as Bitcoins, Stablecoins, NFTs [non-fungible tokens] and CBDCs.”
Stablecoins allow users to convert their dollars into crypto dollars which can then be transferred easily to someone else’s crypto wallet. They make public blockchains useful as payment networks.
NFTs – a method of owning digital assets recorded on the blockchain – are evolving to become an innovative tool for digital media.
Rival payments company Mastercard is also reportedly planning to offer support for some cryptocurrencies on its network this year. It already allows its customers to carry out cryptocurrency transactions, but outside the company’s formal network.
Visa said it had no plans to add any cryptocurrency to its own balance sheet, as companies such as Tesla have done this year.
“We don’t hold cryptocurrencies on our balance sheet today. We hold currencies on our balance sheet that we need to run our business,” Visa’s chief financial officer Vasant Prabhu told CNBC on Wednesday.
“We hold currencies that we get paid in or we pay people in. That tends to be the dollar, euro, pound. So we don’t have plans to hold cryptocurrency because it’s not typically the way we get paid or the way we pay people.”
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4pm: Mahab Al Shimaal Group 3 | US$350,000 | (Dirt) | 1,200m
4.35pm: Al Bastakiya Listed | $300,000 | (D) | 1,900m
5.10pm: Nad Al Sheba Turf Group 3 | $350,000 | (Turf) | 1,200m
5.45pm: Burj Nahaar Group 3 | $350,000 | (D) | 1,600m
6.20pm: Dubai City of Gold Group 2 | $300,000 | (T) | 2,410m
6.55pm: Al Maktoum Challenge Round 3 Group 1 | $600,000 | (D) | 2,000m
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The Matrix Resurrections
Director: Lana Wachowski
Stars: Keanu Reeves, Carrie-Anne Moss, Jessica Henwick
Rating:****
Zayed Sustainability Prize
Avatar: Fire and Ash
Director: James Cameron
Starring: Sam Worthington, Sigourney Weaver, Zoe Saldana
Rating: 4.5/5
MATCH INFO
Europa League final
Who: Marseille v Atletico Madrid
Where: Parc OL, Lyon, France
When: Wednesday, 10.45pm kick off (UAE)
TV: BeIN Sports
Company profile
Company: Rent Your Wardrobe
Date started: May 2021
Founder: Mamta Arora
Based: Dubai
Sector: Clothes rental subscription
Stage: Bootstrapped, self-funded
What can you do?
Document everything immediately; including dates, times, locations and witnesses
Seek professional advice from a legal expert
You can report an incident to HR or an immediate supervisor
You can use the Ministry of Human Resources and Emiratisation’s dedicated hotline
In criminal cases, you can contact the police for additional support
Mercer, the investment consulting arm of US services company Marsh & McLennan, expects its wealth division to at least double its assets under management (AUM) in the Middle East as wealth in the region continues to grow despite economic headwinds, a company official said.
Mercer Wealth, which globally has $160 billion in AUM, plans to boost its AUM in the region to $2-$3bn in the next 2-3 years from the present $1bn, said Yasir AbuShaban, a Dubai-based principal with Mercer Wealth.
“Within the next two to three years, we are looking at reaching $2 to $3 billion as a conservative estimate and we do see an opportunity to do so,” said Mr AbuShaban.
Mercer does not directly make investments, but allocates clients’ money they have discretion to, to professional asset managers. They also provide advice to clients.
“We have buying power. We can negotiate on their (client’s) behalf with asset managers to provide them lower fees than they otherwise would have to get on their own,” he added.
Mercer Wealth’s clients include sovereign wealth funds, family offices, and insurance companies among others.
From its office in Dubai, Mercer also looks after Africa, India and Turkey, where they also see opportunity for growth.
Wealth creation in Middle East and Africa (MEA) grew 8.5 per cent to $8.1 trillion last year from $7.5tn in 2015, higher than last year’s global average of 6 per cent and the second-highest growth in a region after Asia-Pacific which grew 9.9 per cent, according to consultancy Boston Consulting Group (BCG). In the region, where wealth grew just 1.9 per cent in 2015 compared with 2014, a pickup in oil prices has helped in wealth generation.
BCG is forecasting MEA wealth will rise to $12tn by 2021, growing at an annual average of 8 per cent.
Drivers of wealth generation in the region will be split evenly between new wealth creation and growth of performance of existing assets, according to BCG.
Another general trend in the region is clients’ looking for a comprehensive approach to investing, according to Mr AbuShaban.
“Institutional investors or some of the families are seeing a slowdown in the available capital they have to invest and in that sense they are looking at optimizing the way they manage their portfolios and making sure they are not investing haphazardly and different parts of their investment are working together,” said Mr AbuShaban.
Some clients also have a higher appetite for risk, given the low interest-rate environment that does not provide enough yield for some institutional investors. These clients are keen to invest in illiquid assets, such as private equity and infrastructure.
“What we have seen is a desire for higher returns in what has been a low-return environment specifically in various fixed income or bonds,” he said.
“In this environment, we have seen a de facto increase in the risk that clients are taking in things like illiquid investments, private equity investments, infrastructure and private debt, those kind of investments were higher illiquidity results in incrementally higher returns.”
The Abu Dhabi Investment Authority, one of the largest sovereign wealth funds, said in its 2016 report that has gradually increased its exposure in direct private equity and private credit transactions, mainly in Asian markets and especially in China and India. The authority’s private equity department focused on structured equities owing to “their defensive characteristics.”
Who's who in Yemen conflict
Houthis: Iran-backed rebels who occupy Sanaa and run unrecognised government
Yemeni government: Exiled government in Aden led by eight-member Presidential Leadership Council
Southern Transitional Council: Faction in Yemeni government that seeks autonomy for the south
Habrish 'rebels': Tribal-backed forces feuding with STC over control of oil in government territory
Benefits of first-time home buyers' scheme
- Priority access to new homes from participating developers
- Discounts on sales price of off-plan units
- Flexible payment plans from developers
- Mortgages with better interest rates, faster approval times and reduced fees
- DLD registration fee can be paid through banks or credit cards at zero interest rates
21 Lessons for the 21st Century
Yuval Noah Harari, Jonathan Cape
Company%C2%A0profile
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Company profile
Name: Tharb
Started: December 2016
Founder: Eisa Alsubousi
Based: Abu Dhabi
Sector: Luxury leather goods
Initial investment: Dh150,000 from personal savings
Profile of Foodics
Founders: Ahmad AlZaini and Mosab AlOthmani
Based: Riyadh
Sector: Software
Employees: 150
Amount raised: $8m through seed and Series A - Series B raise ongoing
Funders: Raed Advanced Investment Co, Al-Riyadh Al Walid Investment Co, 500 Falcons, SWM Investment, AlShoaibah SPV, Faith Capital, Technology Investments Co, Savour Holding, Future Resources, Derayah Custody Co.
Brief scoreline:
Al Wahda 2
Al Menhali 27', Tagliabue 79'
Al Nassr 3
Hamdallah 41', Giuliano 45 1', 62'
Genesis G80 2020 5.0-litre Royal Specs
Engine: 5-litre V8
Gearbox: eight-speed automatic
Power: 420hp
Torque: 505Nm
Fuel economy, combined: 12.4L/100km
Price: Dh260,500
