Karsten Wenzlaff, Advisor
August 26th, 2025
Karsten Wenzlaff is a Crowdfunding and Fintech Expert from Germany. He is Secretary-General of Digit[...]
Category Archives: Blockchain, Crypto, Digital Assets, Tokens, CBDCs, Stablecoins, Metaverse, NFTs
WonderFi Announces Impressive Jan 2024 Growth Update
Release | Feb 7, 2024
Image by Freepik
WonderFi Technologies Inc. reports a 751% revenue surge in January 2024, showcasing significant growth and operational success.
Key January 2024 Metrics
- WonderFi reported a consolidated revenue of $4.8M (Bitbuy-100%, Coinsquare-100%, Smartpay-100%, Tetra-43% + Bitvo's client and domain acquisition), marking an impressive 751% increase year-over-year.
- As of December 31, 2023, WonderFi's cash and digital asset holdings were valued at $37.4 million, up from $33.4 million on September 30, 2023. This increase reflects the company's strong financial management and strategic investment in digital assets.
- Achieved positive EBITDA and cash-flow positive operations on a consolidated basis during January 2024, highlighting its operational success and financial health.
See: Fintech Fridays EP61: Making Markets and Investing in Crypto with the Phoenix App
- The company's crypto trading platforms facilitated over $350 million in combined trading volumes for the month, a significant increase from $56 million in January 2023. This 524% year-over-year growth in trading volumes demonstrates WonderFi's expanding market presence and user engagement.
- Combined client assets under custody for Bitbuy and Coinsquare reaching approximately $1 billion as of January 31, 2024. Additionally, the company experienced an 82% year-over-year increase in active users in January, indicating strong user acquisition and retention strategies.
Operational Milestones
- Notably, WonderFi's crypto payments processing platform, SmartPay, achieved a major milestone by surpassing $1 billion in total volumes processed since 2020.
- Bitbuy Private Wealth also reported a record January with over $100 million in volumes traded, showcasing a 323% increase year-over-year.
Outlook
WonderFi's latest update highlights significant user growth, strategic acquisitions, and partnerships that broaden its service offerings and market reach. These milestones are not just numbers; they represent a strategic positioning that could redefine competitive dynamics in the fintech sector.
See: Exploring ARK’s 2024 Big Ideas: AI & Fintech Future
By analyzing the synergies between WonderFi and its acquisitions, we can better understand the strategic foresight behind these decisions.
The National Crowdfunding & Fintech Association (NCFA Canada) is a financial innovation ecosystem that provides education, market intelligence, industry stewardship, networking and funding opportunities and services to thousands of community members and works closely with industry, government, partners and affiliates to create a vibrant and innovative fintech and funding industry in Canada. Decentralized and distributed, NCFA is engaged with global stakeholders and helps incubate projects and investment in fintech, alternative finance, crowdfunding, peer-to-peer finance, payments, digital assets and tokens, artificial intelligence, blockchain, cryptocurrency, regtech, and insurtech sectors. Join Canada's Fintech & Funding Community today FREE! Or become a contributing member and get perks. For more information, please visit: www.ncfacanada.org
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B.C. Supreme Court Rejects Crypto Miner’s Power Bid
News | Feb 6, 2024
Image: Unsplah/Robert Linder
Court Denies Crypto Miner's Power Request
Conifex Timber Inc., a forestry company that ventured into cryptocurrency mining, faced a setback in its efforts to secure a substantial power supply from BC Hydro for its operations. The B.C. Supreme Court, led by Justice Michael Tammen, upheld the provincial government's decision to temporarily halt new power connections for cryptocurrency miners, a policy introduced in December 2022 to last for 18 months. This decision was deemed "reasonable," reflecting a cautious approach towards the allocation of the province's electrical resources.
See: Bitfarms Ltd. Announces Upgrade to Its Mining Operations
Cryptocurrency mining, known for its intensive energy consumption due to the continuous operation of high-powered computers, has been a topic of debate regarding its economic benefits versus environmental impact. BC Hydro's CEO, Christopher O’Riley, highlighted the enormity of the power demand by revealing that the data centers proposed by Conifex would have required 2.5 million megawatt-hours of electricity annually, an amount sufficient to power over 570,000 apartments. This revelation brings to light the significant energy footprint associated with such operations, raising questions about the sustainability of large-scale cryptocurrency mining.
Misalignment?
The Energy Minister, Josie Osborne, pointed out that despite the high energy consumption, cryptocurrency mining contributes "very few jobs" to the local economy, suggesting a misalignment with broader economic development goals.
See: Hut 8 Mining’s Merger with USBTC Gets BC Supreme Court Nod
Conifex's response to the court's decision was one of disappointment, with the company expressing its belief in the missed opportunities for the provincial government to enhance energy affordability, foster technological innovation, and achieve more inclusive economic growth.
Outlook
The issue utility providers worldwide must address is the challenge of balancing the power demand from cryptocurrency mining with the goals of clean energy and electrification, especially as the adoption of electric vehicles and heat pumps increases. The global context of cryptocurrency mining, with moratoriums in places like China, Algeria, and some U.S. states, has led to a surge in demand for power in regions like British Columbia, further complicating the energy landscape.
See: White House Proposes 30% Digital Asset Mining Energy (DAME) Excise Tax
The National Crowdfunding & Fintech Association (NCFA Canada) is a financial innovation ecosystem that provides education, market intelligence, industry stewardship, networking and funding opportunities and services to thousands of community members and works closely with industry, government, partners and affiliates to create a vibrant and innovative fintech and funding industry in Canada. Decentralized and distributed, NCFA is engaged with global stakeholders and helps incubate projects and investment in fintech, alternative finance, crowdfunding, peer-to-peer finance, payments, digital assets and tokens, artificial intelligence, blockchain, cryptocurrency, regtech, and insurtech sectors. Join Canada's Fintech & Funding Community today FREE! Or become a contributing member and get perks. For more information, please visit: www.ncfacanada.org
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UK Digital Securities Sandbox: A Guide and Implications
UK Digital Sandbox | Feb 6, 2024
Image by fullvector on Freepik
The UK's Digital Securities Sandbox Regulations Are A Catalyst for Global Fintech Innovation
The Financial Services and Markets Act 2023 (Digital Securities Sandbox) Regulations 2023, which came into effect on January 8, 2024 and introduces the UK's first digital securities sandbox, allowing firms to explore new technologies within a flexible legislative framework. The move is a clear signal of the UK's ambition to modernize its financial market infrastructure through digital asset technology, with a particular emphasis on distributed ledger technology (DLT).
The Role of DLT in Financial Market Infrastructure
DLT is at the heart of this legislative innovation. Its decentralized nature offers a transformative potential for the operation of central securities depositories and trading venues. By enabling direct ownership of investments and bypassing intermediaries, DLT could significantly enhance transparency and efficiency in the financial markets.
See: UK Releases Digital Asset Consultation Results
The technology promises round-the-clock operations, near-instantaneous settlement, and the potential for new models of shareholding, trading, and settlement services.
Legal and Regulatory Adjustments
The implementation of the digital securities sandbox necessitates a series of legal and regulatory adjustments to ensure that digital transactions are recognized and facilitated within the UK's legal framework, addressing potential issues such as the registration of transfers and the maintenance of company records on a distributed ledger. Key areas of focus include amendments to:
- The Companies Act 2006 to accommodate DLT in the trading, settlement, and maintenance of shares;
- The Central Securities Depository Regulation; and
- The Uncertificated Securities Regulations 2001 also require modifications to align with DLT's capabilities.
Who Can Use the Sandbox and How Does It Work?
The sandbox is open to UK-established entities that meet specific eligibility criteria set out in the Financial Services and Markets Act 2023 (Digital Securities Sandbox) Regulations 2023. These entities include, but are not limited to, financial services firms, technology companies, and other organizations that are exploring innovative financial products, services, or business models that utilize digital securities and DLT.
- Firms interested in participating in the digital securities sandbox must apply to enter the program. The application process involves submitting a detailed proposal of the technology or innovation to be tested, including how it intends to use DLT or other digital asset technologies within the financial market infrastructure. The proposal must also outline the objectives of the test, the expected outcomes, and how it aligns with the sandbox's goals.
See: European Blockchain and DLT for SMEs Guide
- To be accepted into the sandbox, applicants must demonstrate that they are UK-established entities and meet the eligibility criteria specified in the regulations. This includes the ability to show that the proposed innovation requires testing within the sandbox environment due to its novel or unique nature and that the firm has the necessary resources and plans in place to manage the test effectively.
- Participants in the sandbox are allowed to test their innovations under a modified legislative framework. This means certain regulations may be applied, disapplied, or modified to facilitate the testing of new technologies. Firms must clearly understand which regulatory modifications apply to their test and ensure compliance with the sandbox's conditions.
- Sandbox participants are required to provide regular updates (reporting) and feedback to the regulators, including the Financial Conduct Authority (FCA) and the Bank of England, if applicable. This includes reporting on the progress of the test, any challenges encountered, and the outcomes achieved. The regulators may also set specific evaluation criteria to assess the test's success and its potential impact on the market and consumers.
- Firms must have a clear exit strategy for concluding their test within the sandbox. This includes plans for winding down the test in a way that minimizes any adverse effects on consumers and the market. Upon exiting the sandbox, firms may be required to submit a final report summarizing the test's findings and any next steps for implementing the innovation outside the sandbox environment.
See: Bank of Canada, TMX say blockchain feasible for securities settlement
The sandbox offers a unique opportunity for firms to explore and develop innovative digital securities solutions within a supportive regulatory environment. By participating in the program, firms can contribute to the evolution of the UK's financial market infrastructure and potentially set precedents for future regulatory frameworks in the fintech sector.
Implications for Canadian and Global Fintech
The UK's digital securities sandbox offers valuable insights for Canada and the global fintech community. For Canadian fintech, this initiative serves as a model for how regulatory frameworks can evolve to support technological advancements while ensuring market stability. While there are a number of sandbox programs across Canada, in the past industry experts have lamented that regulators are simply pushing interested parties to existing registration categories without being a full service digital sandbox that allows companies to 'test novel innovations' wholeheartedly with the support of regulators. Perhaps the closest sandbox to the above definition is Alberta's Bill 13. The Canadian Securities Administrators host the Financial Innovation Hub where you can learn more and reach out directly. All of this highlights the importance of creating a conducive environment for testing and integrating new technologies like DLT.
Globally, the UK's approach underscores the need for international cooperation and the harmonization of legal and regulatory frameworks to facilitate the adoption of DLT and other fintech innovations. As financial markets become increasingly interconnected, establishing common standards and practices will be crucial for the seamless integration of new technologies across jurisdictions.
Next Steps and Future Innovations
The sandbox is set to operate for five years, until January 8, 2029, managed by the Financial Conduct Authority and the Bank of England.
See: UK launches pioneering digital securities sandbox
This period will allow firms and regulators to collaboratively explore the capabilities and implications of DLT and other digital asset technologies within a controlled environment. The flexibility of the sandbox framework, coupled with the potential for HM Treasury to create further sandboxes with different configurations, opens the door to continuous innovation and adaptation in the UK's legal framework to accommodate emerging technologies.
The National Crowdfunding & Fintech Association (NCFA Canada) is a financial innovation ecosystem that provides education, market intelligence, industry stewardship, networking and funding opportunities and services to thousands of community members and works closely with industry, government, partners and affiliates to create a vibrant and innovative fintech and funding industry in Canada. Decentralized and distributed, NCFA is engaged with global stakeholders and helps incubate projects and investment in fintech, alternative finance, crowdfunding, peer-to-peer finance, payments, digital assets and tokens, artificial intelligence, blockchain, cryptocurrency, regtech, and insurtech sectors. Join Canada's Fintech & Funding Community today FREE! Or become a contributing member and get perks. For more information, please visit: www.ncfacanada.org
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Celsius Network’s Chapter 11 Exit and Creditor Plan
News | Release | Feb 5, 2024
Image: Unsplash/David East
Celsius Network announces that it has completed its planned reorganization, distributing over $3 billion to creditors and establishing a new Bitcoin mining entity
Celsius Network's successful emergence from Chapter 11 bankruptcy and the commencement of over $3 billion in distributions signify a major turnaround. The approval of its reorganization plan by an overwhelming majority of its account holders paves the way for a fresh start through the creation of Ionic Digital, Inc., a new Bitcoin mining company owned by the creditors.
See: Celsius Creditors to Return Funds Withdrawn Pre-Bankruptcy
- The reorganization plan received a 98% approval rate on November 9, 2023 from account holders, highlighting strong creditor support.
- Altcoins were converted to BTC or ETH to maximize funds available for distribution to creditors.
- The establishment of a new venture, Ionic Digital, Inc., owned by Celsius creditors, focuses on Bitcoin mining, with plans for the stock to become publicly traded upon receiving necessary approvals. Its mining operations will be managed by Hut 8 Corp.
- Adjustments were made to the plan following feedback from the SEC, ensuring compliance with regulatory standards.
- Following the distributions, Celsius will begin winding down its operations, marking the end of its journey and the start of a new chapter with Ionic Digital.
Outlook
This high profile case in the crypto industry is the potential for recovery even in the face of significant challenges. It also sets a precedent for handling cryptocurrency assets in bankruptcy situations, offering insights and hope for other companies facing similar difficulties.
The National Crowdfunding & Fintech Association (NCFA Canada) is a financial innovation ecosystem that provides education, market intelligence, industry stewardship, networking and funding opportunities and services to thousands of community members and works closely with industry, government, partners and affiliates to create a vibrant and innovative fintech and funding industry in Canada. Decentralized and distributed, NCFA is engaged with global stakeholders and helps incubate projects and investment in fintech, alternative finance, crowdfunding, peer-to-peer finance, payments, digital assets and tokens, artificial intelligence, blockchain, cryptocurrency, regtech, and insurtech sectors. Join Canada's Fintech & Funding Community today FREE! Or become a contributing member and get perks. For more information, please visit: www.ncfacanada.org
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Exploring ARK’s 2024 Big Ideas: AI & Fintech Future
Report | Feb 1, 2024
ARK Invest's "Big Ideas 2024" report outlines ambitious expectations for the evolution of key technologies by 2030 and their potential impacts by 2040.
While the 163 page PDF report covers a plethora of innovations and emerging and converging technologies, this article will look at specific projections providing a roadmap for how innovations in public blockchains, digital wallets, smart contracts, and artificial intelligence (AI) could transform industries and economies over the next decades.
Public Blockchains and Cryptocurrencies Are The Foundation of a New Financial Ecosystem
Public blockchains are set to redefine financial ecosystems by facilitating the migration of all money and contracts onto platforms that ensure digital scarcity and proof of ownership. This shift anticipates a significant reconfiguration of financial systems to accommodate cryptocurrencies and smart contracts, marking a transition towards a digital-first economy.
By 2030: Cryptocurrencies are anticipated to account for about 10% of the global money supply, driven by institutional and high net worth individual investments, nation-state treasuries, and adoption in emerging markets for remittances and global settlements. Cryptocurrencies, particularly Bitcoin, are expected to continue displacing gold as a store of value, capturing 40% of the market. With a projected market value scaling to $5.2 trillion by 2030 for decentralized applications, the economic impact and investment opportunities within this domain are vast and ripe for exploration by fintech innovators and investors alike.
See: Blockchain Private Credit Grew 55% in 2023
By 2040: Cryptocurrencies could largely replace permission-based, centrally controlled monetary systems, reformulating financial ecosystems around digital assets that facilitate transaction flows without counterparty risk. This transformation could begin at the fringes of the financial system, particularly in geographies with inefficient banking systems, and gradually extend to developed markets.
Digital Wallets Are Revolutionizing Payment Ecosystems
By 2030: Digital wallets are likely to become primary financial interfaces for the majority of smartphone users, facilitating more than half of all meaningful financial functions. These platforms are projected to disrupt traditional banking relationships by offering wholesale pricing of financial services and becoming pivotal in e-commerce and other digital services.
By 2040: Digital wallets are projected to close the loop with two-sided networks, offering a suite of financial services tailored to the needs of specific industries. They could enable fully closed payment ecosystems, with platforms like Block, Shopify, and Toast potentially leveraging digital wallets to facilitate transactions and monetize deposits. Vertical software platforms serving merchants with financial services through digital wallets are expected to disintermediate merchant banking, significantly enhancing convenience and reducing the number of steps from payment authorization to merchant settlement.
Smart Contracts Will Automate the Future of Finance
Smart contracts present an automated, global, and auditable alternative to traditional financial intermediaries, offering a transparent and efficient way to manage contracts and transactions on the blockchain.
See: Blockchain Smart Bonds
By 2030: Smart contracts are projected to secure less than 5% of global financial assets by GDP through decentralized protocols, a rate consistent with the early adoption curve of the internet. These protocols, along with application protocols, are expected to significantly reduce the fees extracted by traditional financial institutions, fostering a more efficient and transparent financial ecosystem.
By 2040: Most contracts might migrate to open-source protocols that enable and verify digital scarcity and proof of ownership, diminishing the role of traditional financial intermediaries. This shift could lead to more transparent risk-sharing arrangements, easier asset securitization, and a substantial decrease in counterparty risks.
AI Innovation Is Surging (Today)
AI technology has rapidly evolved, transitioning from simple machine learning algorithms to complex neural networks capable of deep learning and reasoning. This evolution is marked by the development of models like GPT-3 and GPT-4, which have demonstrated capabilities close to human-level language understanding and generation. GPT-3, released by OpenAI, contains 175 billion parameters, making it one of the largest and most sophisticated language models ever created.
AI is already enhancing productivity across various sectors. Tools like GitHub Copilot and AI-driven analytics platforms are automating routine tasks, allowing humans to focus on more complex and creative endeavors. GitHub Copilot has been shown to improve programmer productivity by assisting in code generation and debugging, significantly reducing development time.
Achieving New Heights (2024-2030)
By 2030, AI is expected to dramatically increase the productivity of knowledge workers. As AI becomes more integrated into business processes, tasks that currently take hours will be accomplished in minutes. ARK Invest predicts that knowledge worker productivity will quadruple leading to unprecedented growth in GDP and innovation, fostering new industries and reshaping existing ones.
See: Australia to Regulate High-Risk Artificial Intelligence
AI in healthcare is set to revolutionize diagnosis, treatment, and patient care by enabling precision medicine and reducing human error. Multiomic data analysis and AI-driven diagnostic tools will offer personalized treatment plans with higher efficacy. AI algorithms are already outperforming human radiologists in detecting certain types of cancer in imaging scans, promising more accurate and earlier diagnoses.
The World Will Be Transformed by AI (2030-2040)
By 2040, AI could become a universal personal assistant, deeply integrated into daily life. From managing schedules to making informed decisions on behalf of users, AI assistants will offer a level of personalization and efficiency previously unimaginable. The integration of AI in smart devices and home systems will make smart homes truly autonomous, adjusting to individual preferences for comfort, security, and energy efficiency without human input.
Future AI systems will not only optimize tasks but also engage in creative processes, contributing to art, literature, and science. AI-driven creativity tools could collaborate with humans to produce novel works and solve complex scientific problems. AI-generated art and music are already blurring the lines between human and machine creativity, suggesting a future where AI partnerships could lead to new artistic movements and scientific breakthroughs.
See: Metacrime in the Metaverse
As AI becomes more pervasive, ethical considerations and governance will take center stage. The development of transparent, fair, and accountable AI systems will be critical to addressing concerns around privacy, bias, and autonomy. Ensuring AI systems make decisions in a way that aligns with human values and ethics requires ongoing research, regulation, and dialogue between technologists, policymakers, and the public.
Beyond 2040 AI Horizon
The concept of the singularity—where AI surpasses human intelligence in all aspects—remains a potent idea for the future. The path toward such an event will be marked by incremental advances, each expanding the boundary of what's possible with AI. The journey toward superintelligent AI poses profound questions about identity, consciousness, and the future of humanity itself, inviting us to reimagine our place in a world where intelligence is no longer uniquely human.
Conclusion
By 2040, these technologies are expected to reshape not just industries and economies, but also the very fabric of daily life, presenting both unparalleled opportunities and challenges.
The National Crowdfunding & Fintech Association (NCFA Canada) is a financial innovation ecosystem that provides education, market intelligence, industry stewardship, networking and funding opportunities and services to thousands of community members and works closely with industry, government, partners and affiliates to create a vibrant and innovative fintech and funding industry in Canada. Decentralized and distributed, NCFA is engaged with global stakeholders and helps incubate projects and investment in fintech, alternative finance, crowdfunding, peer-to-peer finance, payments, digital assets and tokens, artificial intelligence, blockchain, cryptocurrency, regtech, and insurtech sectors. Join Canada's Fintech & Funding Community today FREE! Or become a contributing member and get perks. For more information, please visit: www.ncfacanada.org
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Metacrime in the Metaverse
Report | Jan 31, 2024
Lifting the Veil of A New Phygital Frontier for Law Enforcement
INTERPOL recently published a whitepaper providing an insightful analysis of the Metaverse from a law enforcement perspective, focusing on the unique challenges and opportunities it presents from use cases, crimes, forensics, investigations, and governance. The Metaverse, a blend of augmented, virtual, and physical realities, offers a new realm where digital transformation in policing can greatly enhance operational efficiency and public safety. However, it also opens doors to novel criminal activities, termed "Metacrime," requiring new strategies for law enforcement and judicial systems to adapt to this evolving digital landscape.
Metacrime
Metacrime refers to a range of criminal activities that emerge within the Metaverse, a digital realm that blends augmented, virtual, and physical realities. These crimes exploit the unique features and capabilities of the Metaverse, extending beyond traditional cybercrimes to include new, unprecedented forms of illegal activity.
See: Economist Impact Report: Unfolding the Metaverse
Metacrimes encompass various illegal activities such as:
- NFT Frauds: Deceptive practices involving Non-Fungible Tokens, including counterfeit NFT creations and sales.
- Cyber-Physical Attacks: Attacks that target virtual representations of physical infrastructure, causing real-world consequences.
- Identity Theft and Impersonation: Stealing digital identities, deepfakes, and impersonating avatars for criminal purposes.
- Theft of Virtual Assets: Illegal acquisition or manipulation of virtual properties and assets within the Metaverse.
- Grooming and Exploitation: Predatory behaviors targeting minors or vulnerable individuals within virtual environments.
- Financial Crimes: Including money laundering and fraudulent transactions using virtual currencies or assets.
Opportunities and Challenges
+ The Metaverse enables advanced training and simulation for law enforcement, creating immersive environments for practicing crisis management and tactics without real-world risks.
+ It also facilitates virtual meetings and operational coordination, offering platforms for information sharing, training, and reconstructing crime scenes virtually for better situational awareness.
See: AI and the Metaverse: The Imperative for Rules and Regulations
- Metacrime includes various illegal activities like NFT frauds, cyber-physical attacks, impersonation by theft of digital identities, theft of virtual assets, grooming of children, and more. INTERPOL's white paper stresses the necessity for a standardized approach to address these challenges, as the Metaverse encompasses multiple jurisdictions and legal ambiguities.
- The Metaverse also presents unique challenges for evidence collection and crime investigation. Traditional physical evidence is replaced by digital interactions, necessitating law enforcement to adapt to new methods for collecting and analyzing digital evidence, such as endpoint forensics, server investigations, and blockchain analytics.
Metacrime poses unique challenges to law enforcement due to the Metaverse's lack of standardized protocols, its decentralized nature, and the blending of digital and physical realities that may cross multiple legal jurisdictions. Addressing Metacrime requires new forensic techniques, international cooperation, and a deep understanding of emerging technologies and virtual environments.
Outlook
The collaborative effort between INTERPOL, government bodies, and private sectors is essential in shaping a secure Metaverse. This pioneering effort by INTERPOL is a significant step towards tackling the complexities of Metacrime, ensuring a safer and more secure digital world.
See: Gensler’s Remarks at 2023 Securities Enforcement Forum
Despite its challenges, the Metaverse offers significant opportunities for law enforcement, including advanced simulation for training, virtual crime scene preservation, and immersive training platforms. These advancements can potentially transform law enforcement practices and improve efficiency and effectiveness.
The National Crowdfunding & Fintech Association (NCFA Canada) is a financial innovation ecosystem that provides education, market intelligence, industry stewardship, networking and funding opportunities and services to thousands of community members and works closely with industry, government, partners and affiliates to create a vibrant and innovative fintech and funding industry in Canada. Decentralized and distributed, NCFA is engaged with global stakeholders and helps incubate projects and investment in fintech, alternative finance, crowdfunding, peer-to-peer finance, payments, digital assets and tokens, artificial intelligence, blockchain, cryptocurrency, regtech, and insurtech sectors. Join Canada's Fintech & Funding Community today FREE! Or become a contributing member and get perks. For more information, please visit: www.ncfacanada.org
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Visa and Transak Team Up for Crypto Withdrawals in 145 Countries
News | Jan 31, 2024
Image: Unsplash/Stephen Andrews
Transak, a Web3 infrastructure provider, has partnered with Visa to facilitate cryptocurrency withdrawals and payments through Visa Direct
This collaboration allows users to seamlessly convert 40 different digital assets from wallets such as MetaMask into local fiat currencies in over 145 countries without relying on centralized exchanges providing more accessibility and convenience for crypto transactions.
One of the key features of this collaboration is the use of Visa Direct, which enables real-time card withdrawals. This means that users can now transfer money in less than 30 minutes, a stark contrast to the slower processes typical in traditional banking. This development not only enhances the speed but also the convenience of converting crypto balances into fiat currencies that can be used at over 130 million merchant locations globally where Visa is accepted.
See: Visa Announces $100 Million Generative AI Initiative
Transak facilitates the purchase and sale of crypto assets and manages essential regulatory requirements such as Know-Your-Customer (KYC) and risk monitoring. The partnership also addresses a long-standing issue in the cryptocurrency space: the ease of converting crypto to fiat. While many platforms have focused on fiat-to-crypto conversions, the reverse process has often been cumbersome and limited.
Visa's Recent Crypto, Web3, and Blockchain Partnerships
Visa has formed partnerships with more than 60 crypto platforms, including major entities like FTX, BlockFi, Crypto.com, Coinbase, and Binance. These partnerships enable customers to use their digital assets to pay for goods and services with crypto-linked cards, simplifying the process of converting and spending digital currencies.
See: Visa and MasterCard Set to Decrease Average Interchange Fee to Under 1% in Canada
Visa has launched a web3 loyalty rewards program in partnership with SmartMedia Technologies. This program offers digital wallets for collecting tokenized tickets, loyalty coins, digital collectibles, and other perks from brands. These can be applied to virtual and physical experiences. The partnership aims to redefine the value exchange between brands and consumers in a mobile payments-first world. The platform is user-friendly and doesn’t require advanced knowledge of blockchain technology.
Cuy Sheffield, the Head of Crypto at Visa, outlined the company's ongoing initiatives and future plans in leveraging blockchain for global settlements, cross-border disbursements, and client education. Visa has pioneered testing stablecoin settlements on the Ethereum blockchain and expanded its settlement pilot to include the Solana blockchain. The company is exploring the potential of enabling clients to push funds over blockchain networks in approved stablecoins to next-generation digital wallets.
Visa and cryptocurrency payments app Wirex have expanded their partnership to 40 countries. This long-term global partnership allows Wirex to increase its footprint in the Asia-Pacific region and the U.K., further integrating cryptocurrency payment solutions into mainstream finance.
Outlook
The partnership between Transak and Visa offers an easy solution for the conversion of crypto to fiat currencies, addressing a critical need in the digital asset space. By enabling real-time card withdrawals through Visa Direct, the process of converting and spending cryptocurrencies becomes more streamlined and user-friendly, significantly reducing the time and complexity involved in these transactions.
See: Visa’s Solutions for the Creator Economy and Fintech Opportunities for Tomorrow’s Digital SMBs
The partnership's reach, extending to over 145 countries and supporting 40 digital assets, demonstrates a notable expansion in the accessibility and utility of cryptocurrencies in everyday transactions.
The National Crowdfunding & Fintech Association (NCFA Canada) is a financial innovation ecosystem that provides education, market intelligence, industry stewardship, networking and funding opportunities and services to thousands of community members and works closely with industry, government, partners and affiliates to create a vibrant and innovative fintech and funding industry in Canada. Decentralized and distributed, NCFA is engaged with global stakeholders and helps incubate projects and investment in fintech, alternative finance, crowdfunding, peer-to-peer finance, payments, digital assets and tokens, artificial intelligence, blockchain, cryptocurrency, regtech, and insurtech sectors. Join Canada's Fintech & Funding Community today FREE! Or become a contributing member and get perks. For more information, please visit: www.ncfacanada.org
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