Truther, a cryptocurrency payments company, is expanding its offerings by introducing a Visa (NYSE:V) card in El Salvador. Scheduled to launch on January 29, the card allows users to spend the USDT stablecoin directly from their wallets. Users will not have to load funds beforehand, and transactions will bypass custodial services. The company aims to make stablecoin transactions more accessible, especially for those traveling or looking to avoid traditional banking systems.
Previously, crypto payment solutions often required users to top up accounts or manage custodial accounts, a step Truther’s new card eliminates. By utilizing a private wallet operating on the Polygon blockchain, users gain greater control over their funds. The company’s future plans involve transitioning to the Liquid network to enhance privacy features. Visa’s recent initiatives show a trend towards integrating stablecoins into mainstream payment systems, reflecting the increasing utility of such digital currencies.
How Does the New Card Work?
The newly unveiled card allows users to pay directly from their personal digital wallets, automatically converting USDT to the currency required at the point of sale. Effective for both travelers and domestic users, this feature streamlines payments without additional currency conversions or holding balances on centralized platforms. Founder Rocelo Lopes emphasized, “You don’t charge the card beforehand. If you’re at a hotel and the bill is €30, it deducts the USDT equivalent in real time.”
What Are the Economic Implications?
The introduction of the Visa card signifies a strategic development in Truther’s expansion, previously seen in its link with Brazil’s Pix instant payment system, which processes $40 million in daily volume. The new collaboration with Visa emerges alongside Visa’s pilot program designed to support stablecoin payouts globally, especially for gig workers and creators. “Major payments companies such as Visa, Mastercard (NYSE:MA), and Stripe have begun to incorporate stablecoins into their payment flows,” highlighted the report.
Additionally, users will experience a 2% fee on currency conversions, yet Brazilian users will bypass the IOF tax on financial transactions. Following its debut in El Salvador, the first nation to make Bitcoin legal tender, the card will progressively become available to Truther’s broader client base.
The surge in stablecoin usage has been propelled by new U.S. cryptocurrency regulations, with stablecoin transaction volumes in August reaching approximately $10 billion. This growth highlights the evolving role of stablecoins from niche usage to encompassing consumer and enterprise-level payments. Using data from Artemis Analytics, it’s estimated that stablecoin transactions could exceed $122 billion annually.
The entry of Truther’s card into El Salvador’s economy reveals broader shifts in the cryptocurrency industry’s approach to integrating digital currencies into daily life. Such innovations promise to redefine the landscape by offering users greater flexibility and control over digital assets in a global market. This step represents a significant achievement within the ever-growing digital finance domain.
