The US dollar index gained 16 points or + 0.17% and is currently pegged at 92.935. The strength of the dollar came along with the rise in yields on 10-year US Treasuries, currently pegged at 1.714%.
As the strength of the dollar and rising yields on US government notes put pressure on gold, prices fall, it was Visa’s use of cryptocurrencies that drove Bitcoin and Ethereum up dramatically. Bitcoin futures gained 6.87%, or $ 3,715, bringing the price of futures to $ 57,775 per coin.
According to businessinsider.com, “The US payment company Visa announced Monday that it will allow the use of USD Coin to settle payment transactions on its platform.
Visa has tested the payment option through the Crypto.com payment platform and plans to allow more partners to take the same route later this year. ”
Jack Forestell. Visas executive vice president and chief product officer said, “Crypto-native fintechs want partners who understand their business and the complexity of digital currency form factors.”
According to this article, a partnership between Visa and digital asset bank Anchorage was used to complete its first USD coin transaction this month, processing a payment through crypto.com to its own Ethereum address at the bank. Since the USD coin is a stable and pegged coin to the US dollar, it can be held without the need for a Bitcoin-like bank account and does not contain the generally higher transaction fees associated with transferring money.
In an exclusive report, Reuters signaled a change in visas to allow the settlement of payments using cryptocurrency. Visa Inc said on Monday that it would allow the use of the USD Coin cryptocurrency to settle transactions on its payment network, the latest sign of the growing acceptance of digital currencies by the mainstream financial industry. ”
This follows Elon Musk’s announcement last week that Tesla would accept bitcoin to buy its electric vehicles, which marks a significant change and a step forward for the use of cryptocurrency in commerce.
According to Cuy Sheffield, Head of Crypto at Visa, “We are seeing an increasing demand from consumers around the world to be able to access, hold and use digital currencies, and we are seeing demand from our customers to be able to create products. It gives that access to consumers. ”
These initiatives by Tesla and other large financial firms such as Visa, BNY Mellon Bank, BlackRock Inc. and MasterCard Inc. clearly illustrate that many large financial firms are embracing digital currencies, paving the way for their integration into the wallets of investment. As such, they could continue to put pressure on the safe haven asset class like gold.
For more information about our service, just use this link.
Wishing you, as always, good trading and good health,
Warning: The opinions expressed in this article are those of the author and may not reflect those of Kitco Metals Inc. The author has made every effort to ensure the accuracy of the information provided; however, neither Kitco Metals Inc. nor the author can guarantee such accuracy. This article is for informational purposes only. This is not a solicitation to trade in commodities, securities or other financial instruments. Kitco Metals Inc. and the author of this article accept no responsibility for any loss and / or damage resulting from the use of this publication.