Visa Outage in Europe Highlights Potential of Cryptocurrency Payments
Payment technology has provided consumers worldwide with a high level of convenience. If this technology does not work as advertised, the scenario will be very problematic. Visa suffered major outages throughout Europe for most of the day on Friday. This underlines the need for alternative solutions, including cash and even cryptocurrency.
The visa failure in Europe
Consumers and businesses across Europe had major payment difficulties on Friday. Anyone attempting to make transactions through a Visa payment card may have had problems. Transactions were limited or impossible to complete. Financial institutions even advised consumers to use cash or other means of payment. Mastercard was not affected by this issue.
Visa has quickly pointed out that online transactions have suffered less in this regard. Point-of-sale transactions remained “hit and miss” for most of the day. The use of a contactless card for smaller transactions was feasible in most cases. All this shows how vulnerable the financial system is to technical problems.
Events like these often cause unforeseen consequences. Various ATMs in the UK had used up their cash reserves in the afternoon. While the problem was resolved, an official statement was not given. The convenience of payment cards only applies if the complex infrastructure that drives these payments works properly. For Visa, that was far from the case yesterday.
The need for cryptocurrency and cash
Most consumers still have cash available to handle such situations. While such failures are very rare, they can happen anytime. It is therefore very unlikely that cash consumption will ever be completely reduced. Judging from this last mishap, that’s probably the best.
In addition, the Visa issue shows that alternative means of payment are also needed. Unlike pay cards and cash, cryptocurrencies can save the day in times like these. Despite their volatility, many payment processors exist to handle cryptocurrency transactions regardless of temporary price fluctuations.
Consumers and businesses need to pay attention to these alternatives. It’s a good way to keep a steady supply of cash on hand, but it still requires a suitable payment card to withdraw from an ATM. Cryptocurrencies are an option, although today they are accepted only by a few retailers. Such problems could change sooner rather than later.
Kraken Daily Market Report for 02.06.2018
KRAKEN DIGITAL ASSET EXCHANGE
$131M traded across all markets today
Crypto, EUR, USD, JPY, CAD, GBP
Huobi crypto exchange plans Brazil expansion
Huobi, a major cryptocurrency exchange originally from China, is setting up shop in Brazil.
A representative from Huobi Group has confirmed the company’s intent to enter the Brazilian market.
The effort marks another step in Huobi’s plans for global expansion.