Fox in the Hen House: Why the hell is Visa investing in crypto startups??

https://fortune.com/2019/07/10/exclusive-visa-pours-millions-into-cryptocurrency-startup-anchorage/

Here's another example of Visa investing in a crypto startup. This makes perfect sense but for all the wrong reasons. The whole point of crypto is to go around the high fees and centralized control of Visa and other powerful banking entities.

There can only be one explanation. Could it be that Visa invests in the best crypto startups so they have an inside track to undermine them later?

Comments

    HopeHKHopeHK Reputation: 6
    Status: Bounty Hunter
    Send Message

    We are seeing a lot of companies try to kill real crypto by creating phony substitutes that are even worse than using fiat. The key is to make real crypto convenient enough to use every day. BTC is here to stay it is literally impossible to stop it, kind of scary if u think about it. What if it could think for itself?

    33f3588b60bb4befdf8ad1e4b444a845
    MX10178MX10178 Reputation: 75
    Status: Bounty Hunter
    Send Message

    @BLXguru I think you have it exactly right. Visa has taken the if you can't beat them join them approach. If they own little pieces of the best crypto startups, they will be privy to the plans of those companies and can counterattack. I'm just a bit surprised that crypto startups would open themselves up to investment from a company that they are trying to kill.

    581afcd4b8835c2f3a4d63554da5b5e2
    craybateseducraybatesedu Reputation: 66
    Status: Bounty Hunter
    Send Message

    Part of the value they will be getting will likely be direct access to the ledger and therefore to transaction histories. If they can match wallet IDs to the wallets of their business customers, credit card companies may be able to generalize about the revenue, solvency, and transaction rates and histories of their users.

    If Visa wanted to "invest in cryptocurrency," they would buy established cryptos. The only value-add they would get out of getting in on the ground floor of a new high-risk crypto would be the value of privileged access to ledgers and transaction records. Libra has a big enough reach that the transaction histories of potentially millions of customers would be available to them. Because people who use crypto on the regular are less likely to use traditional credit cards, or to make purchases that you wouldn't want to see on a credit card statement, they would be getting a new level of access to their customers' private lives even beyond the enormous amount of intrusive (and leakable, compromise-prone) data they have already. Be very cautious about sharing in an investment with a credit card company!

    5f487ca9db83b62a846ff65f4dce75eb
    karlkarl Reputation: 203
    Status: White Paper Owner
    Send Message

    @craybatesedu I agree

    d1210981cb6fb51f2746a0082f560350
Sign In or Register to comment.