Freelancers, it's about time we had a chat about something that could change the way we get paid. Visa has rolled out a pilot program using USDC that promises to make global payments faster and more accessible. If you've ever been frustrated by slow and unpredictable payment methods, this might be the answer we've been waiting for.
What’s Happening with Visa and USDC?
On November 12th, Visa launched a pilot program that allows U.S. businesses to send payments in USDC, targeting near-instant cross-border transactions. This is especially aimed at freelancers and gig workers who often face delays due to banking inefficiencies and currency volatility. With this new program, businesses can send payments in USDC to creators and freelancers globally via the Visa Direct platform.
This could mean a lot for people in countries where the financial infrastructure is lacking or where the local currency is unstable. Getting paid quickly and reliably could finally be within reach.
"The U.S. 'Genius Act' provided the regulatory clarity needed to legitimize stablecoin use. The law establishes federal oversight and capital standards for stablecoin issuers, offering the legal certainty large financial institutions had been waiting for." — Mark Nelsen, Head of Product, Commercial and Money Movement Solutions, Visa
The Good and the Bad
First, let’s talk about the upside. Paying freelancers in stablecoins like USDC means instant contractor payments. Gone are the days of waiting days or weeks for your money to clear. This is especially appealing to those of us who work with international clients.
Then there’s the operational side. Using USDC can streamline the process for businesses, reducing the number of fiat accounts they need and cutting down on transaction costs. That’s a win-win for everyone.
But hold on. It’s not all smooth sailing. Managing digital assets in volatile economies could lead to dollarization, affecting local monetary policy. Also, the stability of these stablecoins depends heavily on the issuer's ability to maintain their peg to fiat currencies. If confidence drops, we could see liquidity issues that undermine the entire payment system.
The Regulatory Environment
The U.S. 'Genius Act' has been a game changer in terms of regulatory clarity. It’s given businesses the confidence they need to adopt stablecoins without worrying about legal repercussions. But we also need to be careful. Freelancers must keep an eye on local regulations to ensure compliance, or else face the consequences.
What Lies Ahead
As more businesses adopt stablecoin payroll solutions, the demand for instant payments will only rise. The comparison between USD and USDC highlights why stablecoin salaries are becoming more attractive. Simply put, we want to get paid, and we want to get paid now.
Visa’s pilot program could pave the way for others to follow suit, changing the payment landscape for freelancers and gig workers around the globe. As the gig economy keeps growing, it looks like stablecoins will become the norm in the payment system.
Here's to hoping that instant payments are on the horizon. At least, that's what I’m hoping for.
