Tuesday, August 9

Visa is in trouble over its relationship with bitcoin and cryptocurrency companies

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Visa is in the eye of the hurricane, since it recently became known that the United States Department of Justice is investigating this company because it could have engaged in illegal anti-competitive practices. The accusation involves the relationship with some of his clients, such as Stripe, Square and PayPal.

The exclusive of the news was published by The Wall Street Journal portal, this October 27, releasing some details about the investigation.

According to the note from the portal, the investigation is based on the fact that Visa had agreed with these three companies, known for processing a large number of payments, to reduce the commissions for the use of their cards within the platform. However, it appears that Visa made payments to these companies, for reasons that are not clear.

In this sense, the Department of Justice, as reported by The Wall Street Journal, would seek to corroborate that Visa has not encouraged its customers to operate within its payment network by offering monetary compensation, which would be considered unfair and anti-competitive practices.

Although Square and Stripe – companies that have opened their platforms to the use of bitcoin and cryptocurrencies as means of payment – are involved in the investigation, they seem not to be under the eye of regulators. This is because the investigation, for now, will only be focused on Visa.

United States and antitrust laws

The United States has been, throughout history, one of the countries with the greatest number of laws against economic monopolies, requiring that a single company or corporation not have any type of competitor in its field.

One of the oldest laws in this area, dating back to 1890, is the Ley Sherman Antitrust (antitrust), which establishes that a monopoly is restrictive for the proper functioning of a country’s economy. This law saw the dissolution of Standard Oil in 1911, a company owned by magnate John D. Rockefeller.

One of the most recent antitrust moves made by American politics occurred last June, when some legislators in the United States House of Representatives, agreed to a total of five bills to curb the monopolies of large technology companies such as Google, Facebook, Amazon and Apple.

Visa and its relationship with Bitcoin and cryptocurrencies

In the last few years Visa, one of the giants when it comes to processing payments through credit and debit cards, has established a position in favor of Bitcoin and cryptocurrencies. Last May, according to a news collected by CriptoNoticias, the CEO of the company, Al Kelly, commented that the volumes of purchase of crypto assets using Visa cards had increased.

This could signify a sign that the use of Visa has driven, in a way, the adoption of cryptocurrencies.

Binance Card allows its users to pay with their Visa card, backed by the balance in cryptocurrencies within their account. Source: Binance.

Although Visa allows you to buy cryptocurrencies with its cards, the company has been working with large cryptocurrency companies, such as Crypto.com, Coinbase and Binance, along with which it has launched debit cards backed 100% with cryptocurrencies.

On the other hand, according to some reports, Visa is preparing to launch its own blockchain tool, which allows the interconnection between multiple blockchains for the exchange of stablecoins and CBDC.