February 4, 2021 | less than a minute read

Legacy payment systems flip from fighting Bitcoin to fighting over it

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Bryan Jacoutot

Associate

Get in touch

Bryan Jacoutot

Associate

It's a common misconception that Bitcoin and the legacy payment processors like Visa and PayPal are on opposite sides of a battle for the monetary future. Indeed, to realize the full potential of Bitcoin, it will require a "layered" approach. While the first "layer" of the Bitcoin monetary network consists of its battle-tested blockchain, other layers can be built on top of that sturdy foundation to make previously impractical monetary and economic applications a reality. This layered approach can be compared to the modern internet and the underlying TCP/IP protocol.

Bitcoin and crypto custodian Anchorage, last month becoming the first U.S. national "digital asset bank" after it was granted approval for a national trust charter from the U.S. Office of the Comptroller of the Currency (OCC), will hold the bitcoin and cryptocurrencies on behalf of Visa's clients.