Alfred Kelly expressed interest in integrating digital currencies into the payments ecosystem.
Visa’s chairman and CEO, Alfred Kelly, recently voiced support for Bitcoin and Coinbase during JP Morgan’s 48th Annual Virtual TMC Conference held on May 14.
Kelly made these remarks during a discussion with JP Morgan equity analyst Tien‑Tsin Huang. He described the industry as dynamic, composed of multiple elements that create assets with different functions.
He emphasized the importance of distinguishing between cryptocurrencies and digital currencies: the former resemble commodities, while the latter are backed by fiat currencies. According to Kelly, Visa’s interest is focused on the use case for digital currencies.
Kelly characterized digital currencies as “additives” to the payments ecosystem rather than “substitutes or negatives.” The company is also exploring how digital currencies might be valuable in emerging markets, where reducing reliance on cash and expanding access to banking solutions are priorities.
The Visa CEO revealed a partnership with Coinbase in the United Kingdom, explaining that “their cryptocurrency can be converted into Visa credentials and fiat currency and used wherever Visa is accepted.”
Visa has also been developing technology to broaden this emerging asset class. Last week, the U.S. Patent and Trademark Office published their patent for a new system designed to create and manage a variety of digital currencies.
Kelly briefly mentioned Project Libra, which they have not dismissed as a potential participant in the global payments transformation. Although Visa was named as an initial founding member when the project was announced in June 2019, the company subsequently withdrew from the association.
“We chose not to join the association because we did not see how regulatory requirements could be met within that structure, and we have very strong relationships with regulators around the world that we did not want to jeopardize,” he said.
Nevertheless, Kelly said Visa remains in contact with the Libra initiative and expects to have an impact on the payments ecosystem.
This informal conversation coincided with the recent disclosure that JPMorgan Chase, the largest bank in the United States, has begun providing banking services to Coinbase and Gemini.