Visa Inc (NYSE:V) Finance Chief Attacks Bitcoin ‘Bubble’

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Vasant Prabhu, the chief financial officer of Visa Inc (NYSE:V) which is world’s largest payment network has launched an attack on the financial establishment of the Bitcoins.

During an interview with financial times, Prabhu said that the Cryptocurrencies have been used by all types of rogue financial dealers, politicians and even the speculators who have no clear information on what they are engaging in.

Ban on Visa usage For Crypto-Transfers

Visa does not block its consumers from using its platforms to transfer Cryptocurrencies, however some banks which issue its cards have placed in force the ban. The company had only gone to great lengths to comply with anti-money laundering regulations.

Prabhu noted that there is a feeling by some institutions who think they can ably use Cryptocurrencies to circumvent the financial institutions. He narrates of a case in which a bank teller had informed him that he was planning to sell bitcoins in March because he believed the Bitcoins prices would be at the peak by then.

Bitcoins has over time collapsed in value from a high of about $20,000 in December to trade at nearly $8,100 which is still higher from the start early last year.

Potential Competitor

Visa, which has a market capitalization of $279bn feels highly tensed after a series of question were channeled towards them by the investors and analysts on whether the new emerging payments models will disrupt their model.

Besides the largest payment firm having disputed claims of potential threats, its shares are said to be up more than a 1,000% since its initial public offering which was helped by the digitization of the global payments.

Visa is said to be experimenting a technology that seeks to underpin Cryptocurrencies. The company is trying a Blockchain-based platform for banks to be able to facilitate inter-country corporate payments.

Jamie Dimon, who’s the head of JPMorgan Chase in a statement said that he really regrets having termed the Bitcoins platform as a fraud because everyone nowadays wanted to talk to him about Cryptocurrencies.

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